Apple Watch, Indian Wearable Brands Lift Outsourced Smartwatch Shipments Globally
Global smartwatch shipments by manufacturers increased 15% year-over-year, accounting for 69% of total global shipments in the second half of 2022.
Luxshare, a contract manufacturer, has taken over 40% of Apple Watch production and will be in first place in the second half of 2022.
In the second half of 2022, Luxshare, Foxconn, and Compal were the top three manufacturers, accounting for half of shipments in the period.
The top three manufacturers had the majority of Apple Watch orders in the second half of the year. In the year In the second half of 2022, Foxconn's shipment was supplemented by an Apple order. And while shipments of Luxor's smartwatches are flat from the second half of 2021, COMPAL has cut orders from Apple to make a big profit, Evan Lam, senior research analyst at Counterpoint, said in a company blog post.
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In phase 2, LINWEAR, I DO and Yawell will benefit from the phenomenal growth of Indian brands. Huaqin ranks first in this segment for producing smartwatches of various brands.
Growth in smartwatch shipments in the second half of 2022 was driven by strong performance from Indian brands Noise, Fire-Bolt and Boat, said Shenhao Bai, senior research analyst at Counterpoint.
Manufacturers such as LINWEAR, I DO and Yawell have partnered with brands, particularly from India, to increase shipments, mainly focused on the sub-$50 segment, Lam added.
After the company's collaboration with Samsung, Huaqin's shipments increased slightly. The company continues to work with Huawei, HONOR and OPPO.
Original Design Manufacturers (ODM) and Electronic Manufacturing Services (EMS) are playing an increasingly important role in the smartwatch industry as the market continues to grow. Contract manufacturers' supply share is forecast to grow from 69% in 2022 to 70% in 2023. Competition is expected to increase as OEMs must focus on price, supply and reliability, Bai said.
