Liz Lee - Counterpoint

2023 Smartphone Shipments to Remain Flat on Macro Woes While Replacement Cycle Hit Record This Year

Liz Lee — Wed, 07 Dec 2022 01:56:25 +0000

Smartphone shipments for 2022 lowered to 1.24 billion units on economic headwinds from the previous forecast
2022 replacement cycle stretched to record levels
H1 2023 will be weaker than expected, but the outlook for a rebound in H2 still stands

Los Angeles, Denver, Buenos Aires, Toronto, Montreal, London, New Delhi, Hong Kong, Beijing, Seoul – Dec 1, 2022

The global smartphone market will see 2% YoY growth in 2023, according to Counterpoint’s Market Outlook Service. The latest forecast has been revised downwards from the previous forecast of 6% YoY growth in 2023, as macroeconomic headwinds and consumer weakness continue to pressure the smartphone sector. It is expected to continue underperforming through H1 2023 and only start to grow from Q3 2023.

Global Smartphone Shipment Forecast 2022 / 2023 (million units)

Peter Richardson, Vice President at Counterpoint Research, said, “Persistent inflation, expectations of future interest rate hikes, souring corporate earnings, China’s stalled economy, the protracted Ukraine-Russia war, political turmoil in Europe, and a sweeping new set of export controls on China from the US, all contributes to the downward adjustment of the smartphone market forecast. OEMs focusing on the premium segment, which is more resilient than the low to mid-end, are better positioned to deal with these issues, with deep technological expertise and diversified businesses capable of weathering the storm.”

Liz Lee, Associate Director added, “Given an increase in ASP and a consequent long replacement cycle, we expect the annual smartphone shipments are unlikely to come back to pre-COVID levels for the short-term. This year’s replacement cycle is estimated to reach 43 months, its highest level ever. Although the replacement cycle gets shortened sequentially from next year, it will stay above 40 months.”

From 2024, the global market for 5G devices is expected to show healthy growth as efforts to spread low and mid-priced 5G devices continue. Operators are actively promoting 5G, and the incentives are sufficient in many markets to cause consumers to switch to the new technology. The new form factors, such as foldables, will also drive the growth of premium smartphones. With more OEMs entering the foldable segment, the market will see the prices of these phones stabilizing and the foldable segment growing to become more prominent along with the 5G segment.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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Counterpoint Technology Market Research All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. However, we disclaim all warranties as to the accuracy, completeness of this report. Counterpoint shall have no liability for errors, omissions or inadequacies in the information contained and any direct/indirect damages. All opinions and estimates herein are subject to change without notice.

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Global Smartphone Shipments to Contract 3% YoY in 2022 on Economic Headwinds

Liz Lee — Thu, 02 Jun 2022 03:50:46 +0000

Smartphone shipment forecast for 2022 lowered to 1.36 billion units.
Q2 2022 results will be weaker than expected, but the outlook for a rebound in H2 still stands.

Seoul, New Delhi, Hong Kong, London, Beijing, San Diego, Denver, Buenos Aires – June 2, 2022

Total smartphone units shipped globally in 2022 are expected to fall 3% YoY to 1.36 billion units, according to Counterpoint Research’s latest Global Smartphone Quarterly Shipment Forecast. The overall supply situation is expected to gradually improve in 2022 compared to the previous year, although shortages of several parts have not been resolved yet. On the macroeconomic front, expectations for recovery are now falling sharply and more concerns are spreading centered on China’s prolonged recession and the Ukraine crisis. Therefore, we expect this year’s smartphone market to contract.

China’s zero-tolerance approach towards the latest COVID-19 resurgence, with lockdowns of cities and even entire regions, has been slowing down its economy, besides causing a chain reaction across the global economy due to the country’s closed factories and rising logistics costs.
Consumer sentiment has contracted significantly recently due to the spread of global economic uncertainty and surging inflation due to the prolonged Ukraine-Russia war.
Due to the US dollar strength amid rising US interest rates, emerging economies will also face capital flight and inflation.

Global Smartphone Shipments, 2019-2022F (million units)

Peter Richardson, Vice President at Counterpoint Research, said, “For the long term, we continue to expect a steady migration from feature phones to smartphones, and 3G/4G to 5G smartphones. As efforts to spread low- and mid-priced 5G devices continue, the global market for 5G devices is expected to show healthy growth and act as a significant driver of the overall smartphone market. Operators are actively promoting 5G, and the incentives are sufficient in many markets to cause consumers to switch to the new technology. However, the recent global inflation trends are hitting the consumer demand and smartphone BoM costs, acting as a risk for the 2022 smartphone market.”

Senior Analyst Liz Lee added, “However, the outlook for a smartphone market recovery in the second half still stands. At the end of May, the Chinese government convened a meeting for large-scale economic stability countermeasures. The government is expected to implement more aggressive policies to stimulate the economy in the second half. Besides, we believe that new foldable smartphone launches, led by Samsung, will be able to stimulate demand in the premium segment.”

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights, and for press enquiries.

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Global TWS Shipments Grow 24% YoY to Reach 300 Million in 2021

Liz Lee — Thu, 10 Mar 2022 03:57:46 +0000

The $50-$100 and $200+ price bands led the market growth in 2021.
Apple maintained its first position in 2021 but with a shrinking share.

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – March 10, 2022

The global TWS hearables market shipments in 2021 grew 24% YoY in unit sales and 25% in terms of value, according to the latest research from Counterpoint’s TWS Hearables Market Tracker. The unit sales growth rate was slightly lower than the original forecast due to the COVID-19 pandemic impact throughout the year. However, unit sales increased to around 300 million as new products entered the market with more features, like ANC (Active Noise Cancellation) and expanded play time, at affordable prices. In particular, smartphone OEMs continued to focus on TWS products to expand their smart ecosystem, resulting in increased competition and sales in the market.

Note: Figures may not add up to 100% due to rounding

TWS market leader Apple saw a slight increase of 5% YoY in its unit sales but its market share fell to 25.6%. Although the AirPods 3 was released later than expected, the AirPods 2 and AirPods Pro maintained high sales based on promotions throughout the year. With the growing influence of Apple in the Chinese market, sales of old models have also increased significantly. The AirPods 3, primarily doing well in North America and Europe, led the entire TWS market in Q4 2021. Samsung saw a robust growth of 33% YoY with its new models Galaxy Buds Pro and Galaxy Buds 2, released in the first half and second half of the year respectively. Among other brands, Skullcandy and boAt showed noticeable growth, as they became key players in major regions like North America, Europe and India.

Note: Figures may not add up to 100% due to rounding

The growth in the $50-$100 and $200+ segments was notable. JBL and Xiaomi led the growth in the $50-$100 segment with their flagship models, while Skullcandy performed well with its models finding their way to the top 10 list of best-selling models. Apple drove the growth in the $200+ segment with a 75% share. Just like in 2020, the sub-$50 segment accounted for the largest share in 2021 with strong demand from emerging markets like India. Xiaomi recorded the highest sales in the sub-$50 segment, while boAt recorded the highest growth compared to the previous year.

Senior Analyst Liz Lee, who leads Counterpoint’s TWS hearables research, said, “The $50-$100 segment grew significantly YoY, as Xiaomi, which had focused on the sub-$50 segment, tried to expand its lineup to the $50-100 range. Further, the competition in the $50-$100 segment intensified, with smartphone OEMs like OPPO, OnePlus and realme pitted against emerging brands like Skullcandy, JLab and Nothing. All this competition resulted in new products offering good quality and more features at reasonable prices and pushing the market growth in 2021.”

Background

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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$1.1-billion Opportunity Opens up in South Korea with LG’s Exit

Liz Lee — Mon, 06 Sep 2021 04:25:54 +0000

Boston, Toronto, London, Hong Kong, New Delhi, Beijing, Taipei, Seoul – September 6, 2021

A $1.1-billion opportunity has been created in South Korea with the exit of LG from the smartphone market, according to Counterpoint’s latest Korea Smartphone Tracker. This calculation is based on LG’s smartphone revenue in 2019, when business was stable. LG was once the second-largest player in the market.

Samsung is trying to benefit from LG’s exit as it has a wide range of low- to mid-priced Android models. The company will strengthen its Galaxy A line-up further in the second half, along with the recently released Galaxy Z Fold/Flip series. Recently, Samsung included the LG V50 in its buyback program for the first time. Earlier, the program used to target only Samsung and Apple models.

Apple is also upping its game to increase share, although the absence of feature-enabling credit card payments via iPhones in South Korea may act as a barrier in addition to the general tendency of Android-based mobile users to stick to Android models. Apple has recently started to sell iPhones at LG’s electronics retailer LG Best Shop, thus adding offline sales channels across the country. In addition, it reportedly plans to open South Korea’s third and fourth Apple stores after opening the second one at the end of last year. It is also aiming to expand consumer services in the country.

Xiaomi started to get aggressive in South Korea’s low- to mid-end segments with the Redmi Note 10 launch. However, it does not seem easy for the company to take a significant share here as the consumers have a low preference for Chinese brands.

The South Korean smartphone market itself contracted 8% YoY and 17% QoQ in Q2 2021, lacking momentum from the top two dominant players – Samsung and Apple. Both did not have any new flagships during the period. The Galaxy A52 and A72 were not released due to chip shortages, contrary to the company’s original plan. Further, unlike last year, Apple did not release the iPhone SE series either, while the new product effect of the iPhone 12 diminished with the approaching launch of the iPhone 13.

Senior Analyst Liz Lee said, “A strong recovery of the South Korean smartphone market is expected on the back of new launches in the second half. Samsung will likely take the majority of LG’s domestic market share, but it is worth paying attention to overseas brands’ entry, such as Google and Motorola. Their brand awareness is good among Korean consumers, but the key is whether they fully understand the country’s smartphone market and consumer preferences. It will be important for them to benchmark the past effective strategies of LG, including its target price segments and sales channels, to absorb LG’s smartphone users. With this potential competition, we could expect a more diversified competitive landscape of the South Korean smartphone market than before.”

Some of the many questions that prospective entrants to the South Korean smartphone market need to ask themselves are:

How big will the South Korean market be in the coming years?
What was LG’s product positioning?
Which price segments saw LG competing in the most?
What key features do consumers consider when buying?

Our detailed report ‘South Korea Smartphone Tracker’ answers these questions.

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, and for press enquiries.

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Global TWS Market: Q2 2021 Growth Slows on Regional Woes

Liz Lee — Wed, 01 Sep 2021 06:50:19 +0000

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – September 1, 2021

The global market for TWS hearables saw tepid QoQ growth in Q2 2021, as typically strong spring sales waned across the US and Asia ex-China markets, resulting in overall unit sales and value rising by only 1% and 9%, respectively. On a YoY basis, although the market enjoyed 27% growth compared with 2020’s COVID impacted Q2, the rankings saw few new developments, although significant change did arise in terms of market share.

Source: Counterpoint Research Global TWS Hearables Market Tracker, Q2 2021

“Apple lost considerable share in both sales volume and value despite big price drops on the AirPods, but the company is unlikely to be too worried,” says senior analyst Liz Lee, who oversees TWS hearables research at Counterpoint. “I think the 3^rd generation AirPods expected next month could be a massive hit. It’s been so long since we’ve seen a new release, and if you factor in some attractive pricing, it’s very possible the AirPods 3 could push overall sales for Apple TWS hearables past 80m for the year.”

Looking at how unit share is evolving Lee notes, ”Samsung grabbed a big portion of the premium segment, while Xiaomi was a standout across sub-$100. Indian player boAt, also made some great gains on the back of domestic market recovery to reach eighth globally, its best showing ever. Overall, the ecosystem is strong, and we’re seeing many niche and long tail players eking out respectable gains.”

“In terms of revenues, significant share gains are being made by really only a handful of familiar names – Samsung, JBL and to a lesser extent Xiaomi. This is partly because of out-performance in China, where there is a strong ecosystem of smaller budget brands,” observes Lee. “Despite this expansion, as well as declines in the US, the sub-$100 and premium markets continue inching towards parity in terms of volume. This trend is likely to be accelerated by Apple in the coming months, and I wouldn’t be surprised if the premium segment pushes past 50% in the second half.”

Background

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Samsung Galaxy Buds 2: Less Means More

Liz Lee — Tue, 03 Aug 2021 02:33:33 +0000

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – August 3, 2021

Global TWS hearables sales are enjoying strong year-on-year growth, supported by resilience across affordable and high-end segments. Premium is garnering special interest as its sales share remains steady at 46% in Q2 2021 according to Counterpoint Research’s Global TWS Hearables Service, with plenty of upside possible over the second half on the back of new launches from Samsung and Apple.

Source: Counterpoint Research TWS Hearables Tracker.

One of the most anticipated TWS launches this year is the upcoming Galaxy Buds 2, which will be released on August 11 at Samsung’s Unpacked 2021 event. “Features-wise, I don’t expect to see major differences from the Galaxy Buds Pro. What I’m really focusing on is the price,” says Senior Analyst Liz Lee, who oversees TWS hearables research at Counterpoint. “It has increased steadily at each product iteration of the Galaxy Buds, the first of which was introduced back in March 2019. This time around, we’re expecting a 10-20% price cut from the latest Galaxy Buds Pro, which would put things in the $160-$180 range.”

Source: Counterpoint Research, Company Data.

Providing premium segment context, Lee comments, “Samsung has outpaced overall growth in the ‘$100 & above’ segment since Q3 last year. A strong product intro here coupled with continued expansion of earlier models – something the company did well in Q1 2021 – could see Samsung hitting its historical high of 18% or beyond. The biggest determinant of whether that will happen is what price the Galaxy Buds 2 comes in at. If it’s the lower end of our expectations, then we’ll look to increase our volume forecasts accordingly.”

Samsung’s biggest competition in the premium segment comes from Apple, which is expected to release its AirPods 3 later this year. Lee believes that, “the second half does carry risk for Samsung, as the new AirPods 3 release will be the first in over two years, so there will be many upgraders and pent-up demand. Apple also has the luxury of reacting to any pricing surprise from Samsung, and leverage its always strong features and a possible launch timing paired with the iPhone 13 launch.” As well, she adds, “Samsung also needs to keep an eye on the sub-$100 category. Competition here has been fierce, with traditional stalwarts like Skullcandy, smartphone OEMs like Xiaomi and realme, to budget regional (and expanding) plays like boAt and Amoi all jostling for a piece of the overall pie.”

Background

Analyst Contacts:

Liz Lee

Charles Moon

Counterpoint Research
press(at)counterpointresearch.com

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Pandemic Push: Tablet Shipments up 53% YoY in Q1 2021

Liz Lee — Mon, 14 Jun 2021 08:35:41 +0000

Boston, Toronto, London, Hong Kong, New Delhi, Beijing, Taipei, Seoul – June 14, 2021

The global tablet market saw a big revival during the pandemic, emerging from a long slump. The market grew by 19% YoY in 2020 due to the increasing demand for large-screen mobile devices spurred by remote work, online education and extended stay-at-home orders. Continuing the growth trajectory, the market grew 53% YoY in Q1 2021 after reaching a five-year high in Q4 2020, according to Counterpoint Research’s latest Global Tablet Market Report. However, in QoQ terms, it came down by 22% due to the quarter being an off-season period.

Major tablet makers ramped up production and shipments in 2020 to meet the increased demand. Apple and Samsung aggressively released and promoted new models. The two companies expanded their market shares throughout 2020. The top tablet makers seem to have benefited from less competition in the growing market. Many tablet players had earlier downsized or closed the business, while Huawei sharply lost its share due to the US ban.

Apple sold 33% more iPad units worldwide in 2020 than in 2019, and continued to lead the market, expanding its share to 37% in Q1 2021. Despite the off-season effect, Apple improved its performance in all major regions, particularly in Japan, where its sales continued to hit all-time highs. Senior Analyst Liz Lee said, “The basic iPad models accounted for 56% of the overall iPad shipments in Q1 2021. The iPad Air and iPad Pro series came next with 19% and 18% shares, respectively. Since consumers are constantly concerned about prices and portability, the latest iPad 8 emerged as the top-selling model. Launched in October 2020, the iPad Air 4 ranked second on the bestseller list as it was a huge hit with consumers looking for cost-effectiveness as well as high specifications.”

Lee added, “The recently launched M1 iPad Pro carries big changes compared to the previous models. The initial consumer response has been highly positive. But Apple is currently grappling with supply chain constraints such as chip shortages and production issues related to the Liquid Retina XDR panel. Accordingly, we expect the M1 iPad Pro shipments to be able to soar in Q3 backed by supply stabilization. This growth will be maintained in Q4, in line with the peak season effect.”

Our detailed report ‘Global Tablet Market Analysis, Q1 2021’ is available for subscribing clients.

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, and for press enquiries.

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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TWS Sales up 44% YoY in Q1 2021; $100+ Segment in Recovery Mode

Liz Lee — Thu, 03 Jun 2021 02:22:38 +0000

Boston, Toronto, London, Hong Kong, New Delhi, Beijing, Taipei, Seoul – 3 June 2021

The global TWS hearables market managed to sustain its growth trend in Q1 2021 despite the pandemic-triggered economic fall. According to Counterpoint Research’s latest Global Hearables (TWS) Market Report, TWS unit sales grew 44% YoY in Q1 2021. China showed the highest growth YoY while North America continued to occupy the largest share.

Apple continued to dominate, but its share declined due to the intensified competition and the absence of a recent new model launch. Xiaomi, the second-largest brand, also lost its share slightly compared to the previous quarter. Samsung, however, expanded its share QoQ and narrowed the gap with second place.

The share of the over-$100 segment dropped through the last year as more consumers decided to go with the mid-range and budget TWS amid the COVID-19 pandemic. However, the segment’s share slightly recovered in Q4 2020 and reached 46% in Q1 2021. This indicates the market focus is starting to shift to the mid- to high-price segment slowly. Senior Analyst Liz Lee said, “Now is the time for companies to prepare for the change in consumer demand trends as vaccinations are expected to help consumer sentiment improve further in the second half of the year.”

Apple dominated the over-$100 segment with 57% share, followed by Samsung at 17%. In the sub-$100 segment, the total share of the top 10 brands, including Xiaomi, fell due to the diversification of industry participants and intensifying competition. Singling out Samsung as an eye-catching performer in Q1 2021, Lee said, “In highly competitive markets like Asia and Europe, Samsung achieved a double-digit share with good performance of all the models. Samsung successfully introduced the Galaxy Buds Pro, timed to connect with the launch of the Galaxy S21 in January. The company also pushed the sales of earlier models like the Galaxy Buds Live and Plus through aggressive marketing promotions.”

Lee added, “Skullcandy is another notable brand with growth potential across low- to mid-end TWS hearables. The brand is now expanding its market, especially in the sub-$100 segment in the US, through favorable responses for new budget models such as the Dime and Dime XT. The steady sales of earlier models like the Indy ANC and Sesh Evo are also helping.”

Our detailed report ‘Global TWS Hearables Market Tracker, Q1 2021’ is available for subscribing clients.

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, and for press enquiries.

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Global TWS Market to See 33% YoY Growth in 2021

Liz Lee — Tue, 04 May 2021 04:53:15 +0000

The global TWS market grew 78% YoY in 2020 despite the pandemic-triggered downturn.
Apple continued to dominate in 2020 but its share declined steadily.
The pent-up demand for high-end TWS is not expected to explode until late Q3 2021.

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – May 4, 2021

The global TWS (True Wireless Stereo Headset) market is expected to grow 33% YoY (year-over-year) in 2021, reaching 310 million units, according to the Counterpoint Global Hearables (TWS) Market Forecast, 2021-2023. In 2020, it grew 78% YoY despite the pandemic-triggered economic downturn, numbers from the Counterpoint Global Hearables (TWS) Market Tracker for Q4 2020 show. The market slightly exceeded the initial annual estimate for 2020 to reach 233 million units, mainly driven by the strong performance of low- and mid-price segments.

COVID-19 impacted TWS production in China early last year, but the situation has improved since then and the production capacity is now at full-utilization levels. In terms of consumer demand, the impact has been limited, as the market has a relatively higher portion of online sales than other tech devices. Besides, more consumers were willing to purchase tech gadgets and accessories to improve their work/study-from-home experiences.

However, the proportion of low- to mid-end model sales has increased faster than expected due to the economic downturn and related uncertainties. The phenomenon has indeed affected high-end brands’ performances and the overall blended ASP (average selling price) of the market.

Source: Counterpoint Research Global Hearables (TWS) Market Forecast 2021-2023

As COVID-19 will unlikely ease in a short time despite the spread of vaccination, the pent-up demand for high-end TWS is not expected to explode until late Q3 2021. Therefore, major top brands such as Apple are likely to launch next-generation products and make aggressive moves from Q4 onwards this year, which will boost the TWS market further. However, the high growth of the low- to mid-end segment will remain unchanged through the year.

In terms of brand performance, there was no big surprise in 2020. Apple continued to dominate but its share declined steadily through the year and fell below one-third of the TWS market. This year, it will remain a leader selling around 84 million units, but still lose share by 4%p. Xiaomi and Samsung will follow Apple with shares similar to those in 2020.

Senior Research Analyst Liz Lee said, “Most anticipated is a new release from Apple, its first in two years. We expect it to be one of the biggest drivers of TWS market growth from Q4 2021 to the next year. Apple will maintain strong market leadership based on its loyal customer base, although its share will inevitably fall with the intensifying competition.”

Lee added, “At that point, the market focus will gradually shift to the mid- to high-price segment as vaccinations help consumer sentiment improve. Then, most premium brands will add advanced features and various functions to their new models and create high value addition in the long term. Meanwhile, low- to mid-priced brands will further enhance price competitiveness to compete for market share.”

Our detailed report ‘Global Hearables (TWS) market forecast, 2021-2023’ is available on our Research portal.

Feel free to reach out to us at press(at)counterpointresearch.com for questions regarding our latest research and insights, and for press enquiries.

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Q4 2020 TWS Hearables: Global Cooling With Regional Hotspots

Liz Lee — Tue, 09 Mar 2021 03:30:05 +0000

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – March 9, 2021

The global TWS hearables market showed signs of normalizing in Q4 2020, with growth cooling slightly after two quarters of strong sales driven by post-lockdown buying.

According to Counterpoint Research’s latest Global Hearables (TWS) Market Report, Q4 2020 TWS sales grew 13% QoQ and 43% YoY. Strong performance in Asia ex-China and, to a lesser extent, China helped offset flattening growth in key developed markets. LATAM and MEA, which made up less than 10% of the overall market, grew fastest at a combined 25% QoQ.

“We saw an uncharacteristic flattening last quarter in the large markets of North America and Europe. Typically, there is a holiday season sales bump, but this year it was less pronounced on strong buying, both during and post-lockdown,” observed Liz Lee, senior analyst and lead for Counterpoint’s TWS hearables research practice. “In terms of global market share leader there was no big surprise as Apple continued to dominate. However, its share steadily declined through the year, shedding 9%pts to end at 27% overall during the last quarter.”

Lee singled out Samsung as a particularly strong second-half performer, mentioning, “In highly competitive and mature markets like Europe, Samsung’s unit sales during the last quarter were notable, notching up a significant 2%pt QoQ share gain; its Galaxy Buds Live did especially well.”

“In terms of the sub-$100 price band, which was a massive driver of growth through the middle of last year, it has plateaued at around the 55% share level for the past two quarters,” she noted. “I think the market focus will now shift to the over-$100 price band as vaccinations gradually ease pandemic impacts and consumer sentiment improves. Major brands are planning to release new products with advanced features, giving consumers more options, especially in the over-$100 segment. Most anticipated is a new release from Apple – its first in two years – which we expect to be one of the biggest drivers of TWS market growth for 2021.”

Background:

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

DISCLAIMER:

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True Wireless Hearables Market Beats Expectations in 2019 with Apple to Continue Dominating in 2020

Liz Lee — Tue, 11 Feb 2020 00:54:32 +0000

Apple expected to lead the true wireless hearables market, selling more than 100m units in 2020.

Competition for second place will remain fierce, especially in the premium market.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

February 11^th 2020

The global market size for true wireless hearables (or TWS) beat expectations, growing more than 50% in 4Q19, this is now more than 50m units a quarter, according to Counterpoint Research’s latest Hearables Market Tracker. The US market was the main driver for the quarter, growing more than 75% QoQ and accounting for more than 30% of the global market on the back of seasonal promotions and Apple’s new model launch.

The launch of Apple’s new AirPods Pro model in late October helped the company record steady 44% growth in 4Q19, despite supply shortages. Apple’s market share fell slightly but still had more than 40% share (see Exhibit 1). It attempted to keep up with swift overall market growth; market share for the full year reached close to 50%.

Xiaomi kept its second-place spot in the quarter supported by strong sales of its Redmi Airdots, followed by Samsung, QCY and JLab. The race for second place intensified, with Xiaomi and Samsung competing neck to neck.

Exhibit 1: True Wireless Hearables Market Share by Brand – 4Q19

The US$100-and-above segment saw Apple, Samsung and Jabra accounting for more than 80% of 4Q19 sales (see Exhibit 2), as demand surged in developed countries to see overall quarterly growth of 66%. The sub-US$100 band, driven mainly by US and Chinese brands, was more fragmented, with the top three accounting for only a third of the overall pie.

Exhibit 2: True Wireless Hearables Brand Share by Price Band – 4Q19

The expected launch today of Samsung’s new and improved Galaxy Buds Plus at the UNPACKED 2020 event should bring longer battery life, faster charging, and improved sound quality to the vendor’s next earbud iteration, although noise cancellation will likely be unavailable.

“We expect Apple to sell more than 100m true wireless hearables in 2020, including AirPods Pros, to maintain their comfortable lead in the market,” said Liz Lee, Senior Analyst at Counterpoint Research. “The real competition will be for second place, especially in the premium market; Samsung, which had success with Galaxy Buds last year, will need further upgrades to those expected in the Galaxy Buds Plus, including noise cancellation and other advanced features and designs, in order to beat its rivals.”

“Global True Wireless Earbuds (Hearables) Market Tracker by Brand & Regions: Q4 2019” is available for purchase at report.counterpointresearch.com

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

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Varta Will Continue Leading Coin Cell Micro-Battery Market for Hearables

Liz Lee — Wed, 22 Jan 2020 05:34:15 +0000

Global micro-battery market for true wireless hearables will grow 90% year-on-year.

Coin cell batteries will grow to account for 57% of the market in 2020.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

January 22^nd, 2020

Varta, a German battery manufacturer, has seen significant volatility in its share price over the last year. But according to the findings of Counterpoint Research’s recent report – “Global Micro-Battery Market for Hearables (TWS) 2019-2020”, the concern over Varta is likely misplaced and overlooks the recent surge in the true wireless hearables market, which is growing much faster than previously expected. Counterpoint expects that Varta’s sales volume will grow 57% year-on-year in 2020. The research also highlights that concerns over Varta’s temporary supply shortages will be solved and are not fundamental issues relating to Varta’s product or price competitiveness. Varta is also alleging that some Chinese companies are infringing its patents and it is initiating legal proceedings against those companies.

The size of the global market for true wireless hearables is estimated to have reached 120 million units in 2019, according to Counterpoint Research’s Hearables Market Forecast. It grew faster than expected in early 2019, ultimately more than doubling the 46 million units achieved in 2018. Accordingly, the related upstream supply chain has benefited from the boom, with micro-batteries being a key component.

Counterpoint Research forecasts that the micro-battery market will grow 90% in 2020. As the canal-type premium hearables such as AirPods Pro and Galaxy Buds are becoming ever more popular they will also influence the share among the different micro-battery types. Coin cell batteries will jump from around a quarter to well over half the micro-battery market, with Varta maintaining its leading position. Samsung SDI and LG Chem will also benefit from this rapid growth.

Cylindrical micro-batteries, that made-up 48% of the micro-battery market, will decline to represent less than a fifth of the much larger overall micro-battery market in 2020. LG Chem will likely remain the leading player of this battery type.

Pouch (polymer) micro-batteries, for low-end hearables, which are largely driven by small Chinese players, will continue to account for around a quarter of micro-battery sales.

Exhibit 1: Hearables – Micro-Battery* Market Share and Leading Players by Battery Type

* Note: Micro-batteries for earbuds only (excluding batteries for charging cases)

Liz Lee, Senior Analyst at Counterpoint Research, said, “As demand for coin cell batteries exceeds the current supply, more battery companies will commercialize coin cell batteries and expand their capacity. However, as with all rechargeable lithium-ion batteries, there is a safety risk. Leading hearable manufacturers will be aware of the potential brand-damage arising from product failures and will select battery suppliers based on factors including quality. Thus, only a few companies with long-term track records of safety and reliability, are expected to benefit.”

“Global Micro-Battery Market for Hearables (TWS) 2019-2020” is available for purchase at report.counterpointresearch.com. Please feel free to reach out to us at press@counterpointresearch.com for further questions regarding our latest research, insights or press inquiries.

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

The post Varta Will Continue Leading Coin Cell Micro-Battery Market for Hearables appeared first on Counterpoint.

Global True Wireless Hearables Market to Grow by 90% to 230 Million Units in 2020

Liz Lee — Thu, 05 Dec 2019 22:50:28 +0000

The market is expected to grow at 80% CAGR from 2019 to 2022 with a similar growth momentum as the early smartphone market a decade ago

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

December 6^th, 2019

The size of the global market for true wireless hearables is expected to reach 120 million units this year and 230 million units in 2020, growing 90% YoY, according to the findings of Counterpoint Research’s Hearables Market Forecast.

Even though Apple’s market share fell to 45% in Q3 2019, it will likely take more than 50% of the market share on an annual basis. Apple is expected to show a significant turnaround in Q4 fueled by its new model, AirPods Pro, which has gained huge popularity since the launch in late October. In 2020, Apple will maintain a strong market leadership based on its loyal customer base, with advanced product and marketing strategies.

In 2020, the market will be more dynamic as tech giants such as Amazon, Google and Microsoft are entering the true wireless hearables industry, and existing smartphone makers such as Samsung, Xiaomi and Huawei will expand their business aggressively. While the rapid growth of the Chinese market is prominent, Chinese players are expected to pick-up further in 2020. Not only global brands but the emerging Chinese local brands in low-end products will also command attention.

Now new models are ceaselessly released with various features and functions, including noise cancellation, bio-sensing, waterproofing and integrated AI voice assistants in broader price ranges from low-cost entry to high-end premium. In addition, demand for replacements from consumers who purchased first generation products two or three years ago, will likely soar, as well as first time purchasers who are now entering the market in large numbers.

Liz Lee, Senior Analyst at Counterpoint Research, said, “The true wireless hearables market will have a similar growth momentum as the early smartphone market a decade ago. The CAGR of the smartphone market from 2009 to 2012 was 80%, and the true wireless hearables market is expected to grow at 80% CAGR from 2019 to 2022 as well. Based on future product strategies focused on voice communications from global tech companies and their efforts to create high-added value, the true wireless hearables are just becoming one of the daily necessities among consumers.”

Exhibit: Hearables Market Forecast (2019-2022)

“Global True Wireless Earbuds (Hearables) Market Forecast (2019-2022) by Brand and Region” is available for purchase at report.counterpointresearch.com.

Please feel free to reach out to us at press@counterpointresearch.com for further questions regarding our latest research, insights or press inquiries.

Analyst Contacts:

Liz Lee

Counterpoint Research
press@counterpointresearch.com

The post Global True Wireless Hearables Market to Grow by 90% to 230 Million Units in 2020 appeared first on Counterpoint.

Global True Wireless Hearables Market Reaches 33 Million Units in Q3 2019

Liz Lee — Fri, 15 Nov 2019 00:00:13 +0000

The true wireless hearables market for 2019 is expected to reach 120 million units and global tech giants’ strategies focused on voice communication will help sustain the strong growth momentum

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

November 15^th, 2019

The size of the global market for true wireless hearables reached 33 million units (USD 4.1 billion) in Q3 2019, growing 22% QoQ, according to the findings of Counterpoint Research’s Hearables Market Tracker.

Geographically, the US accounted for 31% of the global market and exceeded 10 million units for the first time in a single quarter. China has recently expanded remarkably and grew 44% QoQ in Q3.

Apple continued its leadership by growing sales of the second generation AirPods, but its share fell to 45% in Q3 from 53% in the previous quarter, due to growth among second-tier players. Samsung failed to secure its second place, slipping to third place with 6% share. Xiaomi rose to second place from fourth as sales volume expanded significantly mainly from the Chinese market on the evaluation that its Redmi Airdots is a great budget product with a price point around USD 20.

JBL and Beats were the following leading brands and ranked fourth and fifth, respectively. The market share of their new premium models, such as the JBL TUNE 120 released in July, and Beats Powerbeats Pro in May, have increased significantly, boosted by favorable market reviews of sound quality and design by consumers. Amoi, a new Chinese brand, is also striking. Its F9 product has gained popularity, mainly from the Chinese domestic market. Amoi attained the global sixth position, surpassing QCY, the former leader in the low-end market.

Since new powerful models, such as Apple’s AirPods Pro, Amazon Echo Buds, Microsoft Surface Earbuds, and Jabra Elite 75t have recently been released, consumer interest is increasing. Given the recent growth momentum and the effect of year-end promotions, such as Singles’ Day, Black Friday and Christmas, the Q4 market is expected to show further high growth. Thus, Counterpoint Research expects the annual market to reach 120 million units in 2019.

Liz Lee, Senior Analyst at Counterpoint Research, said, “The recognition that true wireless hearables are the most useful and convenient smartphone accessories is spreading fast among consumers. The elimination of inconvenient wires, sophisticated designs with advanced features such as active noise cancellation is proving a significant purchase motivator. True wireless hearables are also in line with future product strategies focused on voice communications from global tech companies and their efforts to create high-added value. In particular, tech giants such as Amazon, Microsoft and Google have joined in order to spread AI voice assistants through mobile devices, and accordingly true wireless hearables will evolve into smarter devices by replacing and enhancing some functions of the current smartphone.”

Exhibit 1: Q3 2019 – Global Hearables Market

Exhibit 2: Q3 2019 – Market Share by Brand

“Global True Wireless Earbuds (Hearables) Market Tracker by Brand & Regions: Q3 2019” is available for purchase at report.counterpointresearch.com.

Please feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our latest research, insights or press inquiries.

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

The post Global True Wireless Hearables Market Reaches 33 Million Units in Q3 2019 appeared first on Counterpoint.

Game Console Market Set for a Leap in 2020

Liz Lee — Thu, 12 Sep 2019 00:48:37 +0000

A game console is a high-tech gadget primarily designed for consumers to play computer games at home in contrast to home PCs or arcade machines. Sony’s PlayStation 4, Microsoft’s Xbox One and Nintendo’s Switch are recent notable examples of the current 8th generation consoles. They utilize high technologies, including Blu-ray, motion sensing, VR, 4K and HD quality video, and online functions. With the next generation of consoles set for release in 2020, it is time to pay attention to this market as technological advancements will also lead to a spike in sales.

Nintendo’s Successful Turnaround – Not Enough to Boost the Market

Nintendo Switch was a big hit when it launched in 2017. It was a significant contributor to growth in the game console market, having sold about 15 million and 17 million consoles during 2017 and 2018, respectively. Despite its outstanding performance, however, the overall game console market has been sluggish in recent years. The key reason is that two most popular consoles, the PlayStation 4 and the Xbox One, have recently entered the last leg of the product life cycle, i.e., seven years. Further, some youngsters are more familiar with smartphones and tablets to play F2P (Free to Play) games. Therefore, a part of the reason for the sluggishness in demand for game consoles is also the technological advances in smartphones and tablets.

Game Console Market to Enter The Next Growth Cycle from 2020

However, Counterpoint Research expects that the game console market will rebound in 2020 and grow even more in 2021. This will be mainly due to the launch of the new generation products from Sony and Microsoft. Every time these two companies launch a new generation console, there is a massive spike in sales. Reportedly, Sony and Microsoft are preparing for a generational transition, scheduled for late next year. Moreover, we are not seeing any significant shift in demand among core gamers as most of them are not that satisfied with the specifications and features of smartphones and tablets to experience grand 3D video games.

Exhibit 1: Top Three Game Console Players – Sales Forecast (in million units)

* Includes Sony PlayStation®4/PlayStation®5, Microsoft Xbox One/Xbox Two and Nintendo 3DS/Switch/Switch Lite

Sony and Microsoft – Launch of the Next-Generation Products in 2020

The battle of the consoles is now on among Microsoft, Sony, and Nintendo. Although some second-tier players such as Sega, NVIDIA, Valve, Logitech, and local Chinese players have made efforts to get a foothold in the market, their presence has been weak, and they have failed to gain significant market shares. While the top three players have been competing offering differentiated products with multi-utility features for exceptional experiences, the achievement of Nintendo Switch has driven Nintendo to new heights. After a record-breaking comeback, we expect Nintendo to maintain its market position for a while after it releases the Nintendo Switch Lite later this month. Sony and Microsoft have ruled the game console market for a long time. Their strategies are to focus on hardcore gamers that are willing to spend a premium amount on high-performance game consoles. Along with strategic pricing and marketing, both companies will seek to regain their dominance in the game console market with new generation products to be released in 2020.

Exhibit 2: Nintendo Switch Lite to be launched Sep. 20, 2019

Tech Giants Joining the Gaming Industry

Outside the pure game console market, it is noteworthy that major tech giants are entering the gaming industry with different platforms. Facebook-owned Oculus released an all-in-one VR headset, Oculus Quest, last May and its expected sales volume for this year is close to one million units. Apple will launch a new video game subscription service, Apple Arcade, for US$4.99/month on September 19^th. Later this year, Google will also launch a high-performance cloud gaming service, Google Stadia. These services will enable gamers to play high-end games on the internet, without the need for expensive hardware. However, we believe that this concept of cloud gaming and VR gaming do not pose a threat to the game console market in the near future as the target customers will be different. In addition, VR/AR headsets will actually be a growth driver, as they will ultimately combine with game consoles.

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Global True Wireless Hearables Market Reaches 27 Million Units in Q2 2019

Liz Lee — Fri, 30 Aug 2019 05:12:40 +0000

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

August 30^th, 2019

The true wireless hearables market for 2019 is expected to reach 120 million units backed by a pick up in demand in the Chinese market and the continued growth of existing major markets

The size of the global market for true wireless hearables reached 27 million units in Q2 2019, growing 56% quarter-on-quarter (QoQ), according to the findings of Counterpoint Research’s Hearables Market Tracker. While all major regions, including the US, have shown high growth, China has more than doubled due to the success of its 618 online shopping festival and the acceleration of demand for true wireless hearables.

Apple, the top global brand, continued its leadership by expanding sales of the second-generation AirPods launched in late March, but its market share fell to 53% in Q2 from 60% in the previous quarter due to the growth of the second-tier players. Driven by the strong sales of Galaxy Buds launched in early March, Samsung secured its second place with an 8% market share, the same as that in the previous quarter.

In addition, the brands that have been prominent in Q2 are Xiaomi and Beats. The sales of Xiaomi Redmi Airdots, newly launched in April, surged with a favorable market review as a great budget product. Xiaomi is now aggressively catching up with QCY, the former leader in the low-end market. PowerBeats Pro, launched by Apple’s affiliate Beats in May as its first true wireless hearables, has successfully settled in the premium market with good reviews of sound quality and design. However, it is more expensive than second-generation AirPods.

While premium models, around US$150 and above, still ranked high in the best-sellers list, QCY T1 and Xiaomi Redmi Airdots followed closely. New rising stars like Huawei Freebuds Lite, JBL TUNE 120, and PowerBeats Pro also showed a solid performance.

Liz Lee, Senior Analyst at Counterpoint Research, said, “The true wireless hearables market marked a steep growth in the second quarter. Given such a growth momentum in the first half of the year, we expect the annual size of the true wireless hearables market for 2019 to reach 120 million units. In addition to the continued growth of existing major markets such as the US and Europe, the consumer demand for budget true wireless hearables when purchasing a smartphone will become another growth engine, especially in China.”

Exhibit 1: Global Market Share by Brand for Q2 2019

Exhibit 2: Global Top 10 Best Selling List for Q2 2019

“Hearables Market Tracker Q2 2019” is available for purchase at report.counterpointresearch.com. Please feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our latest research, insights or press inquiries.

Analyst Contacts:

Liz Lee

Counterpoint Research

press(at)counterpointresearch.com

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Global True Wireless Hearables Market Reaches 17.5 Million Units in Q1 2019

Liz Lee — Fri, 14 Jun 2019 02:34:55 +0000

The launch of new premium models and the spread of existing budget models are fuelling the growth spurt together.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

June 14^th, 2019

The size of the global market for true wireless hearables reached 17.5 million units in Q1 2019, growing 40% quarter-on-quarter (QoQ), according to the findings of Counterpoint Research’s Hearables Market Tracker. While all regions continued to grow, North America and Europe were the fastest growing regions.

Apple’s market share remained at the same level seen in the last quarter, failing to grow in spite of the launch of its second generation AirPods. While sales of the first generation AirPods were higher than expected thanks to a variety of sales promotions for stock-outs in the channel in Q1 2019, sales of the new model were weaker than initially expected due to the market’s mixed response.

Samsung significantly expanded its market share and ranked the second for the first time by aggressively promoting its new and enhanced model, Galaxy Buds. It is expected to maintain this momentum for a while thanks to the market’s positive response as well as the effect of bundling with Galaxy S10 series.

While premium models, around US$150 and above, ranked high in the best-sellers list, QCY T1 and JLAB JBuds Air were strong in the low-to-mid-tier segment. New rising stars, Soundcore Liberty Air and Tzumi Sound Mates also began to show a solid performance.

Exhibit 1: Global Market Share by Brand for Q1 2019

Exhibit 2: Global Top 10 Best Selling List for Q1 2019

Speaking about the competitive landscape, Liz Lee, Senior Analyst at Counterpoint Research said, “It remains uncertain if Apple’s market share could stay at the present level with the current product portfolio in the coming quarters. Samsung is trying to strengthen its dominance with Galaxy Buds, propelled by bundling with Galaxy S10 series. The recent performance of QCY and Soundcore, who are also expanding their global presence, is noteworthy. Above all, Google, Amazon, and Microsoft are expected to release true wireless earbuds in the second half of this year. The market is getting more dynamic and energetic.”

The comprehensive and in-depth reports, “Hearables Market Tracker Q1 2019” and “Hearables Market Analysis Q1 2019” including regional market analysis, are available for purchase at report.counterpointresearch.com. Please feel free to reach out to us at press (at) counterpointresearch.com for further questions regarding our latest research, insights or press inquiries.

Analyst Contacts:

Liz Lee

Counterpoint Research

press(at)counterpointresearch.com

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How Competition is Driving Innovation in the EV Battery Market

Liz Lee — Thu, 30 May 2019 15:00:41 +0000

Electric vehicle (EVs) have emerged as a focal point of realizing eco-friendly policies across the world. Increasingly, automobile OEMs recognize that the future of their products lies outside the ecosystem of internal commercial engines (ICE). As a result, they are tweaking their business models to be future ready.

For EVs, the most crucial component is the battery. No wonder then that competition is getting fiercer among global automobile OEMs and battery manufacturers to get a hegemony over the EV battery market. However, this competition is also yielding technological breakthroughs.

In the automotive paradigm, lithium-ion battery technology stands at the center of innovation. There has been a significant amount of progress in the improvement of lithium-ion battery technology. Here, we provide a brief overview of some of these developments and what the future holds.

NCM 811 just around the corner

Battery cell manufacturers are spending heavily on R&D for improving the energy density of lithium-ion batteries. Although the speed of improvements has been slow, gradually, lithium-ion batteries have helped increase the driving range of EVs by utilizing high-energy source materials and improving the per-unit cell size. There have been considerable efforts to boost the nickel portion of total cathode materials. Most of the top battery players have announced their plans for commercialization/mass production of NCM811 by 2019-2020. NCM811, which contains 80% nickel, 10% cobalt and 10% manganese, has a much longer lifespan and allows EVs to go further on a single charge. In April, CATL mentioned it had begun mass production of the NCM811. Recently AESC, acquired by Envision Group from Nissan, also announced its plan to produce NCM811, which promises more than 300Wh/Kg and 600-650Wh/L in 2020.

Solid-state batteries coming next

Battery companies have been introducing a roadmap for solid-state battery technology as the next-generation technology and exhibited various innovative products as well. In theory, solid-state batteries have a lower risk of electrolyte being exposed or exploding due to physical shock. This is because solid-state batteries adopt a solid electrolyte made of polymer or ceramic materials instead of the liquid electrolyte used in current lithium-ion batteries. Thanks to their high performance at elevated temperatures and high capacity, solid electrolytes are a technology that could further boost energy density. Interestingly, automobile OEMs seem to be taking a more proactive approach towards the R&D of the solid-state batteries. So far, Toyota ranks first in the number of patent applications for solid-state batteries. Last year, Volkswagen announced it would invest US$100 million in solid-state battery maker QuantumScape to mass produce the product by 2025.

Exhibit 1: Battery energy density & EV range on the rise

Falling battery prices

The falling prices of battery cells and packs are also fueling the penetration of EVs. EV battery cell and pack prices were estimated to be US$140-US$150 per kWh and US$170-US$180 per kWh respectively, at the end of 2018. Thanks to economies of scale that battery cell makers will experience with energy density improvements, the price per kWh will keep falling further. By 2025, we predict EV battery cell and pack prices would fall below US$80 per kWh and US$100 per kWh respectively. This implies the cost will decline around 10% per annum. Consequently, the battery pack, which currently accounts for 30-40% of EV manufacturing costs, will make EVs cheaper than equivalent internal combustion engine (ICE) vehicles after 2025. With more countries moving to phase out ICE vehicles and more automobile OEMs rolling out EV fleets, the price drops should trigger explosive growth in EV demand. Ultimately, this will form a virtuous cycle.

The massive leap in the market size

According to Counterpoint Research’s Smart Automotive Research, passenger EVs will exceed 11 million units (including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)), by 2025, and many steps in the new value chain are up for grabs. After 2025, EVs will be expected to cost the same or lower than conventional ICE vehicles, offering new opportunities for automobile OEMs and battery players. Not only is the EV market growing, but sales-weighted average battery capacity per EV is also on the rise. Accordingly, we expect the passenger EV(BEV/PHEV) battery pack market will expand to over 600 GWh by 2025 and generate nearly US$60 billion in revenue.

Ramping up production capacity

Leading battery manufacturers including CATL, Panasonic, LG Chem, Samsung SDI, and SK Innovation are fighting to win orders from global automobile OEMs. In doing so, they are also providing an excellent stimulus to each other. We do not see it as meaningful for battery vendors to line up order backlogs as long-term orders are generally flexible in terms of sales volume and price and depend on the market situation. Instead, it is essential to get a picture of ramp-up plans for the entire industry in order to track supply and demand movements going forward. Capacity expansions have accelerated sharply since the EV portion of global vehicle sales volume began to look significant. The cumulative capacity reached 129GWh at the end of 2018. We expect the cumulative battery production capacity for EVs to increase to nearly 800GWh by 2025, led mainly by the expansion of the top players.

No significant changes in the competitive landscape before 2025

Unlike other technology products, batteries are customized components. EV batteries, especially, need to be precisely optimized for each EV right from the product development stage to get optimum power and safety management. As the EV battery business requires a long history of competitiveness in such product development along with mass production experience, the industry has a high entry barrier. That is why we expect existing top players will continue to lead the market, and there will be no significant change in the competitive landscape for a while.

But, what about automobile OEMs who are willing to take battery cell technology and production into their own hands? At the initial stage, we believe that they will have to depend on long-term battery supply deals from multiple battery vendors. The long-term contracts will help to clear supply bottlenecks at a time of soaring demand and hold out the promise of cheaper batteries over time. Automakers will also have flexibility in supply for potential emergency scenarios and encourage competition among vendors to get better prices. In the meantime, they will attempt to internalize EV battery manufacturing based on the know-how and R&D accumulated through acquisitions or benchmarking a battery vendor in an exclusive partnership. When the time comes for the market focus to shift from the current lithium-ion batteries to solid-state batteries after 2025, the industry could look very different.

Exhibit 2: Global EV battery suppliers and auto OEMs

You can click here to download the full report on “How Competition is Driving Innovation in the EV Battery Market” from our Research portal.

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Global True Wireless Hearables Market Reaches 12.5 Million Units in Q4 2018

Liz Lee — Fri, 29 Mar 2019 03:25:03 +0000

Apple was the market leader with its AirPods as premium models continued to dominate the market. However, mid-tier brands started to gain market share.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

March 29^th, 2019

The size of the global market for true wireless hearables stood 12.5 million units in Q4 2018, according to the findings of Counterpoint Research’s Hearables Market Tracker. North America was the largest market, accounting for 24% of the volumes, followed closely by the Asia Pacific region excluding China and Europe.

In terms of brands, Apple was the clear leader with a 60% market share. However, its share was dented as customers waited for the new generation of AirPods, scheduled for launch in Q1 2019. The strong performance of second-tier brands, such as JLab and QCY, also had a negative impact on Apple’s market share.

Apart from Apple’s AirPods, the best sellers list featured premium models priced around US$150-200. Jabra Elite Active 65t, Samsung Gear IconX, and Bose SoundSport Free featured were some of the premium models in the top 10 best-selling list. However, several low to mid-tier models priced under US$100 also made their mark.

Speaking about the competitive landscape, Liz Lee, Senior Analyst at Counterpoint Research said, “In Q4 2018, cost-effective models such as JLab JBuds Air True Wireless and QCY T1 gained considerable market shares. As more companies enter the market and roll out new devices equipped with advanced features at a reasonable price, consumers will get a wider choice in the future. We expect the competition to intensify going ahead.”

Exhibit 1: Global Market Share by Brand for Q4 2018

Exhibit 2: Global Top 10 Best Selling Models for Q4 2018

Summary of major regions for Q4 2018:

North America – Apple remained strong in its home market. However, global brands like Samsung and Jabra, and interestingly JLab and iQ Podz, also performed well in the US and Canada.
Europe – Apple underperformed with a bit lower market share as compared to other regions. Other premium brands, such as Jabra, outperformed. Jabra, in particular, had a market share of 14%. Performance of new brands such as Arbily, HolyHigh, and Vigoshop across Western Europe was also noteworthy.
Asia Pacific (ex. China) – Apple’s performance seemed healthy but the eye-catching performance was from the new Asian brands like Britz and GLIDiC. Growth in the Asia Pacific market is expected to be strong driven by developing countries.
China – Apple’s market share was relatively lower as compared to other regions. QCY’s presence is growing with its budget devices T1 and T1S. Other Chinese local brands including Honor, Edifier and ENKOR also had a strong performance in China.

The comprehensive and in-depth Market Tracker and Reports for Hearables are available for purchase at our Insights Portal. Please feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

Analyst Contacts:

Liz Lee
+82 2 553 4813

liz@counterpointresearch.com

Counterpoint Research

press(at)counterpointresearch.com

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True Wireless Hearables Sales to Climb To 129 Million Units Globally by 2020

Liz Lee — Thu, 14 Mar 2019 19:07:44 +0000

Apple will continue to dominate the market. However, Samsung, Huawei, and traditional wireless headset manufacturers will grow alongside new entrants

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

March 15^th, 2019

The global market for true wireless hearables is estimated to reach a volume of 129 million units by 2020, according to the latest research from Counterpoint Research’s Emerging Technology Opportunities (ETO) service.

The upcoming second-generation of AirPods and similar earbuds from other technology giants will be the catalyst for market growth. It is based upon the premise that the penetration of wireless hearables among global smartphone users will keep increasing along with the view that Apple will aggressively drive this business to offset declining smartphone sales. Apple AirPods’ sales were estimated at around 35 million units accounting almost three-fourths of this emerging segment last year, according to our research. Samsung, Bose, Jabra, Huawei, Bragi, LG all are prevalent and will grow from a smaller base from last year. New entrants such as Google and eventually likes of Amazon, Plantronics will drive the market forward.

Commenting on the hearables traction in 2019, Peter Richardson, Research Director noted, “2019 will be the year that hearables evolve into an important market. During the year, major technology companies are expected to drive innovations in true wireless hearable devices. A rise in discretionary incomes of consumers and evolving digital habits are expected to propel the demand for hearables across the world as well. The global market for true wireless hearables is expected to reach US$27 billion in terms of value by 2021”

Exhibit 1: Global True Wireless Hearables Sales Volumes (Millions of Units)

Highlighting the potential of hearable devices, Liz Lee, Senior Analyst at Counterpoint Research said, “Hearables have the chance to be a part of a future where information and connectivity are integrated into our daily lives more than ever. Above all, personal voice assistants such as Apple Siri, Google Assistant, and Amazon Alexa are likely to boost the market from 2019. Future generations of hearable devices will be able to accommodate virtual personal assistants and used for a multitude of tasks such as queries and hands-free directions. Ultimately, advanced hearables can reduce smartphone use, as they may take over many tasks that users solve with the help of their smartphones today.”

Commenting on the technology trends, Liz Lee added, “As the trend among modern hearables is going towards physical miniaturization while maximizing functionality and user experience, it opens up many exciting capabilities to be integrated into future hearable devices. These include in-ear intelligent assistants to control devices and tasks around you, to act as smart hearing aids, real-time language translation, tracking your vitals and more.”

The growing market will benefit not only content, applications providers but also component vendors looking to scale beyond the saturated smartphone markets. The key component players who will benefit include Li-ion (Lithium Ion) battery suppliers, microphone, sensors, speakers and chipset providers as manufacturers seek to offer optimal performance in terms of audio, sensing and above all battery life.

While the hearables segment is a potential growth market for the entire industry from component suppliers to brands, it is important to understand the consumer attitude and preferences towards this emerging segment.

Therefore, to better understand customer preferences about hearables, Counterpoint Research recently conducted a comprehensive consumer study of existing and potential hearables buyers in the United States, one of the biggest initial markets for hearables. Following are some of the insights from our Consumer Lens study on hearables:

Hearable Type and Brand Preferences: It is not surprising that wired earphones/earbuds have been the most common choice up until now. However, the adoption of “wireless hearables” amongst premium smartphone users is increasing. Apple is a distinct leader with AirPods in the category of true wireless earbuds. Ease of use, comfort & fit, and portability were highlighted as the key reasons for choosing Apple AirPods over other wireless headsets.

Exhibit 2: Brand Preference Rankings & Key Drivers

Usage Pattern and Location of Use: Almost two out of three respondents listen to music for more than 40 minutes a day while one in every four respondents watches videos for an hour or more with hearables. Home is the most common place of use while leisure/fitness activities are the next most common use-case for hearables.
Future Purchase Preference: With advancements in multiple technologies, reducing the size of hearable devices and the mass adoption from smartphone brands, true wireless hearables are becoming more attractive to consumers. Over half of the respondents have the intention to buy Artificial Intelligence (AI)-based hearables in the future.

Pavel Naiya, Senior Analyst at Counterpoint Research said, “The consumer research confirms the growth potential of the hearables segment. While examining user satisfaction, usage patterns, preferences and understanding the key factors influencing purchase decisions, we verified that consumers have an increasing desire to buy hearables equipped with enhanced features including improved battery life, AI-based voice assistants, etc.”

“Use of AI in voice tech is emerging as a new user interface with the many new applications. Around three out of four people now consider it as an important feature for future hearables purchase. It is a new user interface which needs a totally new ground-up development approach by the ecosystem players to make it more user-centric and feature rich. We believe it will evolve as an open ecosystem similar to the touch interface, following the natural process of evolution. The platform with maximum touch points along with better user experience is likely to win,” Pavel added.

The detailed insights are available in the latest reports for purchase at report.counterpointresearch.com

- - ‘Hearables – Next Big Thing in Tech’
  - ‘Consumer Lens – Hearables Consumer Insights (US)’

Please feel free to reach out to us at press@counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

Analyst Contacts:

Liz Lee
+82 1085208920

liz@counterpointresearch.com

Pavel Naiya
+91 9818507702

pavel@counterpointresearch.com

Counterpoint Research

press@counterpointresearch.com

The post True Wireless Hearables Sales to Climb To 129 Million Units Globally by 2020 appeared first on Counterpoint.

Liz Lee - Counterpoint

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True Wireless Hearables Sales to Climb To 129 Million Units Globally by 2020