According to a Counterpoint Research report, outsourced manufacturing for smartwatches saw a 15% year-on-year growth, making up 69% of total shipments in the second half of 2022.
What Happened? This rise in outsourced smartwatch shipments was primarily driven by the strong performance of Indian brands like Noise, Fire-Boltt, and boAt, as stated by Senior Research Analyst Shenghao Bai.
Comparatively, the share of global smartwatches produced by Outsourced Device Manufacturers/ Electronics Manufacturing Services in the second half of 2021 was 63%.
In terms of volume, Luxshare, Foxconn, and COMPAL emerged as the top three outsourced manufacturers in the latter half of 2022, holding a share of 21%, 16%, and 12%, respectively. These three companies together accounted for half of the global smartwatch outsourced shipments during this period.
Luxshare led the rankings as it took on approximately 40% of Apple Watch orders. Meanwhile, other manufacturers like Huaqin, LINWEAR, I DO, and Yawell also exhibited strong performances in smartwatch production.
See also: India’s Wearables Market Soars: Shipments Surge 80.9% Amid Fierce Competition
Ivan Lam, Senior Research Analyst, noted that Luxshare’s smartwatch shipments remained flat compared to the second half of 2021. Foxconn’s shipments rose due to Apple orders, ranking the company second in terms of shipments. At the same time, COMPAL reduced its orders from Apple in an attempt to achieve a higher profit margin.
Manufacturers such as LINWEAR, I DO, and Yawell increased their shipments by partnering with multiple brands, particularly Indian brands focusing on the sub-₹4,000 segment.
Counterpoint anticipates the share of shipments from outsourced manufacturers to climb to roughly 70% in 2023 from 68% in 2022.
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