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Understanding Global IoT Ecosystem Development Through Smartphone Sales:

The Demand Logic Behind Multi-Category Ratios

In the global consumer electronics industry, smartphones have long held a central position—being the most widely adopted, deeply penetrated, and nearly universal device, far surpassing wearables, headphones, and tablets in terms of reach. As such, the smartphone is not only users’ primary gateway into the digital world but also the most stable anchor point for observing the structure of a multi-device ecosystem.

Building on this premise, using smartphones as the benchmark to examine the sales ratio of other devices relative to phones transforms complex differences in end-user ecosystems into comparable and quantifiable structural indicators—this is the Multi-Category Correlation Ratio Coefficient.

According to Sandalwood’s global e-commerce market monitoring data, on average, for every 100 smartphones sold globally, there are 67 wearables, 128 headphones, and 28 tablets sold.

This multi-category correlation ratio is not merely a raw sales proportion; rather, it reflects the natural usage structure of smart devices across multiple scenarios—including health & fitness, sports, home entertainment, education, and mobile commuting:

• Headphones reach a coefficient of 128 due to their high repurchase rate, frequent replacement cycles, and universal compatibility across devices and use cases.
• Wearables at 67 indicate partial penetration in health and fitness scenarios.
• Tablets at 28 reflect the relative stability—and limited growth potential—of home-based usage contexts.

Why Do Different Regions Develop Distinct IoT Ecosystems?

Decoding the Tiered Global Penetration Pathways

Different regions around the world exhibit vastly divergent multi-device ecosystem structures—differences that form the most critical contextual backdrop for IoT expansion overseas.

In emerging markets, the ecosystem remains firmly in the “smartphone-centric phase.”

This is clearly reflected in the correlation ratios: Latin America (Wearables 47 / Headphones 54 / Tablets 17) and Emerging Asia-Pacific (44 / 79 / 13) both illustrate this pattern. Consumers primarily allocate their budgets to smartphones themselves. Audio devices, thanks to their low entry barrier, are the first category to scale, while penetration of wearables and tablets remains limited. Ecosystem brand influence is weak, and user education around multi-device scenarios has yet to fully take root.

Countries such as the Philippines, Indonesia, Vietnam, Peru, and Argentina all follow this structure—showing clear demand for audio products, but with deeper IoT adoption still in its infancy.

The Middle East & Africa (MEA) market resembles other emerging regions but displays a distinctive “audio-first” pattern.

Take Egypt as an example: headphone ratios reach relatively high levels, while wearables and tablets remain low. This indicates that audio products—due to their affordability and universal applicability—have become the first breakthrough category for IoT in this region. Wearables and tablets will likely only gain traction once disposable income rises and lifestyles evolve.

In MEA and similar markets, the IoT penetration pathway typically follows a clear progression: audio first → wearables next → tablets last, reflecting a natural expansion from shallow to deep usage scenarios.

In sharp contrast stand the developed Asia-Pacific markets, which boast the world’s most mature multi-device ecosystems.

Japan and Australia stand out in particular, where users commonly adopt a full suite of devices—smartphone + smartwatch + headphones + tablet. Ecosystem brands like Apple and Samsung enjoy deep penetration, and device synergy has become an integral part of daily life.

Europe, meanwhile, exhibits a “stable maturity” structure (Wearables 112 / Headphones 115 / Tablets 54): multi-device usage is normalized, but consumer behavior is more pragmatic, driven by steady, long-term upgrade cycles rather than rapid adoption spikes.

If regional differences reveal “where demand exists,” then platform dynamics determine “how that demand is accessed.” Platform variation is thus the second critical factor determining whether IoT categories can successfully land and scale overseas.

From Amazon to TikTok Shop:

Which Platforms Are Driving Multi-Device IoT Growth?

Among the world’s leading e-commerce platforms, Amazon and Rakuten demonstrate the strongest multi-device ecosystem synergy.

• Amazon’s correlation ratios—Wearables 124, Headphones 192, Tablets 64— indicate that users have established stable, multi-device purchasing behaviors.
• Rakuten shows even higher ratios, reflecting a user base in mature markets that actively adopts complete device ecosystems.

These platforms share key characteristics: high-income and high-frequency shoppers, strong concentration of ecosystem brands (e.g., Apple, Samsung), and well-developed content and review systems. Together, these factors make them among the most mature channels for IoT e-commerce overseas.

Allegro, representing Eastern Europe, exhibits a “balanced and mature” platform structure.

Its ratio combination—Wearables 63, Headphones 73, Tablets 18—suggests consumers do engage in cross-category purchases, but with a measured, pragmatic pace.

For IoT brands, European platforms like Allegro are better suited for long-term user education, ecosystem lock-in, and steady growth of mid-to-high-end products.

In contrast, emerging-market platforms—Shopee, Lazada, Tokopedia, and MercadoLibre—largely reflect a “smartphone-dominated” structure:

• Wearables (22–43) and tablets (13–15) show low penetration,
• While audio is the only category exceeding a coefficient of 100 (ranging from 32 to 110).

This reveals that IoT adoption in emerging markets remains in its early stages: consumers prioritize value-for-money, ecosystem brand influence is weak, and smart device usage scenarios are limited. For IoT brands, this means starting with low-barrier, high-experience, content-driven categories—primarily audio and entry-level wearables—to gradually build brand awareness and ecosystem mindshare.

Most notably, TikTok Shop breaks the traditional penetration logic of emerging markets.

With Wearables at 75—significantly higher than other emerging platforms—and Headphones at 202, approaching Amazon’s level, TikTok Shop’s structure stems from its content-driven model: powerful scenario-based demonstrations, vivid product showcases, and strong “grassroots seeding” (social proof via influencers). This enables users to be educated and converted before they even recognize a clear need, effectively skipping the traditional awareness-building phase.

As a result, TikTok Shop is becoming the most significant incremental force accelerating IoT adoption in emerging markets, especially for experiential products like wearables and headphones, where penetration speed far outpaces traditional platforms.

By combining regional maturity with platform capabilities, we can map the strategic landscape for global IoT expansion:

• Developed markets are the main arena for the full ecosystem to take hold, requiring multi-category synergy strategies.
• Emerging markets should use audio as the breakthrough point and then gradually expand to wearables and tablets.
• The Middle East and Africa rely on lightweight categories to build user entry points.
• Europe is suited for steady upgrades.
• TikTok Shop is an important “structural variable” that accelerates IoT penetration.

Conclusion

Conclusion: Ultimately, IoT’s overseas growth depends both on the natural demand structure of each region and on platforms’ ability to penetrate and educate users.Regions determine “how ready consumers are,” while platforms determine “how many people brands can reach.”Only at the intersection of these two structural forces can IoT categories identify their true strategic leverage—precisely aligning with regional maturity and partnering with the platforms best positioned to drive demand—to build a cross-regional, cross-platform IoT growth engine.