New Delhi, May 22 Outsourced manufactured smartwatch shipments increased 15 per cent (on-year) and accounted for 69 per cent of overall global shipments in the second half of 2022, a report mentioned on Monday. Luxshare, Foxconn and Compal were the top three outsourced manufacturers.
Luxshare undertook around 40 per cent of Apple Watch production, according to Counterpoint Research.
In tier-2, Huaqin ranked first as it produced smartwatches from a variety of brands. Meanwhile, LINWEAR, I DO and Yawell benefitted from the stellar growth of Indian brands.
“The YoY increase in outsourced smartwatch shipments was driven by the strong performance of Indian brands Noise, Fire-Boltt and boAt. The outsourced manufacturers who offered production services for these brands benefited in H2 2022,” said senior research analyst Shenghao Bai.
As global smartwatch shipments continue to grow, the contribution of outsourced manufacturing sources has also increased.
About 69 per cent of global smartwatches were produced by ODM/EMS (original design manufacturer, electronic manufacturing service) in H2 2022, compared with 63 per cent in H2 2021, Bai added.
Foxconn’s shipments in H2 2022 rose due to the orders from Apple, helping the company rank second in terms of shipments. Meanwhile, Compal reduced orders from Apple in pursuit of a higher profit margin, said senior research analyst Ivan Lam.
ODMs and EMSs have started playing more important roles in the smartwatch industrial chain as the global smartwatch market continues to grow.
The share of shipments from outsourced manufacturers is expected to rise to about 70 per cent in 2023 from 68 per cent in 2022, the report noted.