Smartwatch firms turn to price cuts to gain market share

economictimes.indiatimes.com:

Noise, Boat, Fire-Boltt, and Boult Audio – have resorted to a bruising price war in a bid to capture market share – reminiscent of smartphone sales online a few years back. Analysts have also pointed to the ability of smartwatch makers to drive down the prices of their products, considering the falling production costs. The price war is most evident in the lower end of the market, which is where most companies have been launching most of their new products over the last year.

Several top industry executives said while the competing firms are working on software plays and adding new layers on top of the core hardware offering, price being the major differentiator has impacted margins as well. “There is absolutely no control on the pricing game and others (brands) are also forced to do it or you will lose market share,” a top executive in one of the leading brands selling smartwatches said. This, sources added, has led to fluctuation in the ranks almost every quarter.

Consider this: The latest report from electronic devices research agency IDC India showed Gurgaon-based Noise leading the pack in April-June in share of shipments with a 27.6% market share, followed by Fire-Boltt at 23.8%, and Boat with 15.2%. In the January-March quarter, Fire-Boltt bested the competition with a 28.6% share. Boult Audio — a relatively new entrant into the space – grabbed a 3.4% bite of quarterly shipments in April-June 2023, an improvement from its meagre 0.3% share in the same period last year.

“Xiaomi had the market share two years back. Noise had it last year, and Fireboltt this year. But none of them have their own platform.