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A stronger dollar is expected to hurt wearable device sales this year

Analyst firm IDC has predicted that we will continue to see stable wearable device sales in the third and fourth quarters, as the strengthening US dollar makes it more difficult to purchase these devices in local currencies around the world. While 2022 looks bleak for businesses, IDC says 2023 will be a better year as people in mature markets look to replace their gadgets and people in developing countries join them.

Commenting on how companies are doing this year, Jitesh Ubrani, research director for IDC Mobility and Consumer Device Trackers, said:

“It’s unfortunate that companies like Apple, Samsung and Google are launching more high-end smartwatches at a time when the appetite for high-priced products remains in question. And even if the prices of some new products remain the same as the previous generation, the strength of the US dollar makes it more difficult to purchase in local currencies around the world.”

According to IDC, wearables include earbuds, watches, wristbands and more. In the second quarter, watches saw some growth, but bracelets and the like fell sharply while earpieces remained stable. Next year at the same period, everything should grow except for bracelets, which will see a much smaller decline than this year.

IDC data showing wearable sales

When it comes to companies that sell these products, the top five players haven’t changed. The list includes Apple, Samsung, Xiaomi, Huawei and Imagine Marketing. Unfortunately, four of these companies experienced year-over-year declines in the second quarter.