Samsung Chasing Apple... Clashing in the Smartwatch Market in Q3

Counterpoint Research Q2 Report
Samsung Overtakes Huawei to Rank 2nd in Smartwatches
Apple Expected to Unveil New Apple Watch Model in September

Galaxy Watch5_Silver_40mm

[Asia Economy Reporter Cha Min-young] While Apple is leading the smartwatch market with the 'Apple Watch,' Samsung Electronics is holding its ground with the 'Galaxy Watch4' series, closely trailing as the world's second-largest in the second quarter. With Apple expected to unveil a new Apple Watch model in September, Apple's defense and Samsung's offensive are anticipated to intensify.

According to global market research firm Counterpoint Research on the 29th, the global smartwatch market grew by about 13% year-on-year in the second quarter of this year. The Indian smartphone market grew more than threefold compared to the previous year, surpassing China and driving the global market. Lim Su-jeong, Executive Director at Counterpoint Research, noted, "Although China's market shrank in the second quarter due to an economic downturn, the overall market performed relatively well compared to expectations," adding, "Considering the smartphone market declined by 9%, the smartwatch market appears to be maintaining steady growth."

Global Smartwatch Market in Q2. Data by Counterpoint Research

The most notable aspect of the second quarter is Samsung Electronics' strong performance. Samsung recorded a market share of 9.2%, up 1.8 percentage points from 7.4% in the same period last year, rising to second place. Chinese Huawei, previously in second place, dropped to third as its market share fell from 9.0% to 6.8% due to sluggish domestic demand. Apple, ranked first, saw a slight decrease in market share to 29.3% in the second quarter from 30.6% the previous year but maintained a commanding lead over the second place.

Samsung Electronics' strong results are attributed to the high sales of the previous Galaxy Watch4 series, especially in North America and India. The recently launched 'Galaxy Watch5' series is also expected to benefit from carryover effects. In fact, the Galaxy Watch5 series, which began official sales after the recent pre-order period ended, is reported to be selling about 10% more units compared to its predecessor. Samsung is intensifying marketing efforts, such as offering free wireless earbuds 'Galaxy Buds Live' to pre-order customers of the 'Galaxy Watch5 Pro' LTE model.

Samsung's challenge to Apple is expected to continue into the third quarter. Apple is anticipated to unveil the iPhone 14 series along with the Apple Watch Series 8 at a special event on September 7 (local time). Samsung also released aggressive Galaxy Watch5 advertisements immediately after the 'Galaxy Unpacked' event. In the ad, a round symbol knocks down square shapes standing like bowling pins, symbolizing the round Galaxy Watch and the square Apple Watch, respectively. IT specialists including SamMobile commented, "The third quarter will be very interesting with the appearance of the Galaxy Watch4 and the new Galaxy Watch5," adding, "Thanks to the larger battery capacity, the new model is likely to outsell its predecessor."