The wearable electronics market experienced one of its toughest periods in the second quarter of 2022, according to a report from research firm International Data Corporation. Sales of wearable gadgets decreased by 6.9% year to 107.4 million units.

Demand has slowed amid rising inflation, recession fears, increased spending on other categories of electronics and a significant increase in the wearables market over the past two years.

The leaders in this product category are Apple, Samsung, Xiaomi, Huawei and Imagine Marketing. For four of the top five companies, the researchers recorded a decline in sales between April and June. Small brands continue to target lower prices than they put pressure on the average cost.

Companies such as Apple, Samsung and Google continue to release expensive smartwatches, but at the same time, demand for premium products remains in question, said Jitesh Ubrani, research manager at IDC. Even though prices of new products remain at the same level as last year, the strength of the US dollar makes it difficult to purchase goods in local currency around the world, the expert added.

Rising prices and declining demand have also reduced the overall sales outlook for wearables. IDC forecasts shipments for all of 2022 to remain flat at 535.5 million units. The researchers believe that the growth in demand for headphones and smart watches will resume in 2023 due to the emergence of new buyers in emerging markets.

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