“Apple’s powerful iOS ecosystem, typically comprised of consumers with larger disposable incomes, has been the main driver for growth” — Analyst Sujeong Lim
From “TWS Drives 2020 Wearables Growth; Smartwatches to Add Momentum From 2021,” which landed on my desktop Thursday:
“The trend around removing jacks and earphones from devices and boxes is becoming a big driver for TWS [true wireless stereo] segment growth,” says Counterpoint Research senior analyst Liz Lee. “It also helps that mobile media consumption continues to grow, making TWS [true wireless stereo] the next must-have accessory.”
In terms of smartwatches, demand is expected to wane in 2020 but should pick up this year, according to senior analyst Sujeong Lim, who covers IoT and emerging technologies. “The normalization of economies coupled with increased interest in health and fitness will help the smartwatch market grow. We expect low double-digit growth through the medium term – possibly higher if average selling prices decline quickly.”
Based on the latest figures from Counterpoint Research’s TWS Market Tracker and Smartwatch Model Tracker, premium products continued to lead, with Apple products comprising 29% and 28% of TWS and smartwatch shipments, respectively, in Q3 2020. Lim observed that, “Apple’s powerful iOS ecosystem, typically comprised of consumers with larger disposable incomes, has been the main driver for growth – especially in terms of revenues. High-end stalwart Samsung has also performed consistently.”
“But there is big potential in budget, and we’re already seeing the impact in hearables. In Q3 2020, half of the top 10 were budget brands with sub-$50 and even sub-$20 offerings; Xiaomi best illustrated the trend as it consolidated its number two spot.”
Cue the “earware” spreadsheet (click to enlarge):
My take: Not sure I’d put my money on “high-end stalwart Samsung” in this market.