Basic laptop shipments fell to 41.7 million units in the first quarter of 2022, according to research firm Canalys. This is a 4% reduction in laptop shipments compared to the same period last year.
The basic laptop market is witnessing a decline in shipments, in part due to the advent of smart watches.
Meanwhile, wristwatches, which include basic watches and smart watches, accounted for 76.6% of total portable band shipments during the first quarter, and grew 15% to 32 million units. However, sports / baseband shipments fell below 10 million this quarter for the first time. This is a far cry from the 27.9 million shipments in the fourth quarter of 2019.
The increase in wristwatch shipments was key to recovering the drop in baseband shipments. However, it could not avoid a global reduction in laptop shipments. With more manufacturers offering basic, mid-range, and high-end smartwatches, fitness trackers are clearly on the sidelines. It is unclear whether this trend will continue, although it seems inevitable at this time.
“Consumers favor watches above bands. With larger screens, richer features and longer battery life, they believe watches are better able to meet their digital health and lifestyle tracking needs. “says Sherry Jin, a research analyst at Canalys. “Basic watches are positioned as an affordable step compared to basic bands, suitable for price-conscious consumers with growing expectations of what wearables can do.”
An April 2022 consumer survey conducted by Canalys found that 34% of the 4,000 respondents in Western Europe are considering buying a smart watch in the next 12 months. Only 17% said they would get a basic fitness band or a wearable. This shows that smart watches are growing in popularity. This could be costly for Fitbit and Xiaomi, which are among the top senders of baseband or wearables.
Huawei overtook Samsung in second place in terms of smart watch shipments
The smartwatch segment still belongs to Apple, however, thanks to strong demand for the Apple Watch Series 7. While Samsung’s smartwatch shipments increased 53%, Huawei came in second. But not everything is good for Huawei either, says Cynthia Chen, an analyst at Canalys. “Even with an improved combination of the basic and smartwatch device portfolio, Huawei has a downward trend as its smartphone business has shrunk.”
“Rising global inflation is expected to hamper consumer spending on non-essential products. But smart watches are now tools that many users have grown to keep healthy and informed, and will continue to be a category with growth potential in 2022, “Chen said of the future.