The 2022 release of the Apple Watch Ultra has made a huge difference to the average selling price of the entire smartwatch market, according to a new report.
While Apple only released the Apple Watch Ultra in the fourth quarter of 2022, it had enough time to boost sales of the smartwatch segment that belongs to wearables costing more than $400. And not by a little bit, either.
According to the report, sales of smartwatches worth more than $400 increased by a whopping 129% compared to the previous year. The only other price point to see growth over 2021 was at the opposite end of the spectrum. Smartwatches costing less than $100 also experienced growth.
Ultra watch, Ultra prices
The Apple Watch Ultra costs $799 and is almost twice as expensive as the base Apple Watch Series 8. It's accepted to be the best Apple Watch you can buy right now, which helps it carry that price. But it's in a market all of its own given the relatively high price point. And its entry into that price bracket has made huge changes to the market as a result.
Counterpoint Research analyst Woojin Son believes that "Apple strongly drove the average selling price (ASP) rise in the global smartwatch market in 2022, especially in the >$400 price band." They go on to suggest that the Apple Watch Ultra is one reason, but there's also a second to be considered.
"There are two main reasons for this ASP rise – a diversified Apple smartwatch line-up and a rise in the exchange rate," the analyst says. "This year, Apple released its first premium model, Ultra, at a release price of $799 in the US. In addition, as the exchange rate rose, the local price of Apple Watch in various countries changed."
There's little doubt that the Apple Watch Ultra's asking price is the main reason for the huge increase in the sales of >$400 smartwatches, however. Now all eyes will be on Apple to see what it does to continue that trend moving forward.
