PARIS: Samsung is concerned about its low market share in the affordable wearables market, especially in countries like India. To address this, the company plans to introduce low-cost fitness bands with limited features and work with the government and digital organizations to offer wearables as a service, according to a top company executive.
Digital Health
Hon Pak, head of the digital health team at Samsung Electronics, explained, “We understand that there are government subsidies and other initiatives to accelerate digital health. We are exploring how we can be part of that, to reduce costs, and provide a service instead of just selling a device.”
After launching Samsung’s premium health-focused smartwatches, Pak told reporters that the company is looking at various business models and pricing strategies to increase adoption. “It’s a high bar to get adoption,” he said.
In India, Samsung held only 0.5% of the overall smartwatch market but had a 15.7% share in the advanced smartwatch category in the March quarter of 2024, according to IDC. Despite this, the company ranked 11th in the smartwatch market, with Indian brands offering more affordable and lifestyle-oriented products dominating the segment.
ASPs
The average selling prices (ASPs) of smartwatches in India dropped from $29.24 to $20.65 in the March quarter due to inventory issues and price cuts by brands to clear stock, according to IDC. Advanced smartwatches, including Samsung’s and Apple’s devices, made up only 3.2% of the market in Q1 2024.
Indian Market for Samsung
Pak emphasized the importance of the Indian market for Samsung, noting that many health features are being developed at its research centers in India. “We are doubling down in India. It is an important market for us,” he said. “We also know there is a price sensitivity issue, and we are going to address this in a significant way.”
Samsung’s latest wearables, the Galaxy Watch 6 and Watch Ultra, can measure the user’s metabolic age by detecting glucose molecules in the skin. Pak described this as an early step towards non-invasive diabetes monitoring and said the company aims to track blood sugar levels using smartwatches and rings. “In the US and India, diabetes is a significant problem. We want to measure glucose levels in real-time non-invasively. No company has done that except for minimal invasive methods. We are working on it,” he added.
Pak also highlighted the importance of bringing AI to the masses to address healthcare delivery challenges in India and other countries. “Without AI, how do you scale any solution for the masses?” he said, pointing to workforce shortages in healthcare.
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