sandalwood

Executive Summary

The global smart wearable market is pivoting from volume to value. In Jan-Apr 2026, smart wristwear revenue grew 18.7% YoY, outpacing the 7.3% volume increase. Smart bands are showing strong resilience, with continuous monitoring, recovery, low-disturbance features, and health management reopening growth potential.

Subscription models are diversifying into four paths: WHOOP's aggressive "screenless hardware + mandatory subscription"; Fitbit Air's "low-cost hardware + AI health subscription"; Apple Watch's "ecosystem hardware + content add-on"; and AMAZFIT's "hardware matrix + optional subscription."

As AI integrates into health and fitness, wearables are evolving from "Hardware + App" to "Hardware + AI + Services." Future competition will go beyond sensors, battery, and price—it hinges on who can reliably capture biometric data and leverage AI to deliver trustworthy, personalized, and actionable insights.

Smart Wearables Go Premium, Sports & Health Services Become Growth Drivers

The global smart wearable market is transitioning from rapid adoption to structural upgrading.

On one hand, smartwatch growth is stabilizing, with health features and expanded price ranges becoming key drivers for upgrades. On the other hand, smart bands are no longer just low-cost entry-level devices. Led by new screenless wearables like WHOOP, the band category is opening up new premium opportunities.

According to Sandalwood's global e-commerce data, smart wristwear sales volume grew 7.3% YoY from Jan-Apr 2026, while revenue grew 18.7% and ASP rose 10.6%. The market is clearly shifting from competing on volume to competing on value structure.

By category, while smartwatches remain the core of the market, smart bands are signaling stronger growth. Overseas smart band sales volume grew 16.9% YoY, revenue grew 31.1%, and ASP rose 12.1%—all outpacing the smartwatch market.

Unlike smartwatches that carry more functions, smart bands are better suited for continuous, low-disturbance monitoring. Scenarios like sleep, recovery, stress, and exercise load don't require a larger screen, but rather longer, more stable contact with the body.

Under this trend, WHOOP, Fitbit Air, Apple Watch, and AMAZFIT are redefining the relationship between hardware and subscriptions in different ways: subscriptions are no longer a one-size-fits-all model, and services are no longer just an add-on to hardware.

Subscriptions Evolve into Four Models, Redefining the Hardware-Service Relationship

From WHOOP, Fitbit Air, and Apple Watch to AMAZFIT, the service evolution in smart wearables is diverging into four distinct paths:

• WHOOP treats subscriptions as its core revenue.
• Fitbit Air uses subscriptions as a conversion gateway following low-cost hardware.
• Apple Watch leverages subscriptions to enhance its ecosystem.
• AMAZFIT prioritizes hardware, with subscriptions serving as optional add-ons.

WHOOP adopts the most aggressive "screenless hardware + mandatory subscription" model. Breaking from tradition, the hardware is free but must be bundled with a service plan, making subscriptions the primary income source.

It offers three annual tiers: One ($199), Peak ($239), and Life ($359). Higher tiers unlock advanced hardware and features—for example, the Life plan includes the WHOOP MG and unlocks ECG, AFib notifications, and blood pressure insights.

WHOOP's core value isn't just displaying biometric data, but translating metrics like heart rate, HRV, and sleep into actionable training, recovery, and lifestyle decisions. The company reports over 2.5 million global members. E-commerce data from Jan-Apr 2026 shows WHOOP's revenue grew 246.4% YoY with an ASP of ~$327, confirming the market impact of this high-value subscription model.

Fitbit Air follows a "low-cost hardware + AI health subscription" model, serving as Google's entry point into health data and AI services. It features a screenless, lightweight, 24/7 wearable design with a $99 price tag ($129 for the special edition), including 3 months of Google Health Premium.

Unlike WHOOP's strict bundling, Fitbit Air's basic tracking requires no subscription. Google Health Premium ($9.99/month or $99/year) offers value-added services like Google Health Coach, AI health insights, and advanced sleep/recovery/training analytics. The strategy is to use affordable hardware to widen the user base, then convert a portion into AI health subscribers.

Apple Watch takes the "strong ecosystem hardware + value-added content subscription" path. Revenue remains hardware-driven, with SE, Series, and Ultra models spanning $249 to $700+. Fitness+ is an enhancement, not a prerequisite. Without it, the Apple Watch still delivers full health, fitness, notification, payment, and ecosystem functionality.

Apple's strength lies in its vast hardware ecosystem. Subscriptions aren't meant to replace hardware revenue but to strengthen the stickiness between iPhone, Watch, and Fitness+.

AMAZFIT leans towards a "hardware matrix + optional subscription" model. Taking the Helio Strap (~$99.99) as an example, core health, recovery, and training features are free. The Zepp App's basic functions are free, with subscriptions like Zepp Aura offering optional AI sleep aids, relaxation content, and advanced insights.

AMAZFIT doesn't rely on mandatory subscriptions to boost ASP. Instead, it uses a broad hardware lineup to maximize reach, enhancing user value through mid-to-high-end products and optional services. Its core range sits between $50-$200, with sales shares in the $50-$100 and $100-$200 brackets rising to 10.7% (+3.7pct) and 11.3% (+2.6pct) respectively—delivering near-professional functionality at mass-market prices.

From "Hardware + App" to "Hardware + AI + Services"

Previously, most smart wearable brands followed a "Hardware + App" growth logic: hardware collected data, while the App displayed it, hosted features, and drove user engagement. While effective in the past, simply syncing data to an App is no longer enough to create lasting differentiation as basic capabilities become ubiquitous.

The service-driven approaches of WHOOP, Fitbit Air, Apple Watch, and AMAZFIT all point to the next evolution: the shift from "Hardware + App" to "Hardware + AI + Services."

Hardware remains the gateway to biometric data, and the App won't necessarily disappear, but its role will transform. It will evolve from a mere data dashboard into a vehicle for AI to understand users, generate insights, and deliver services.

For brands, the true long-term opportunity isn't just adding a subscription button. It lies in translating continuous biometric data into actionable services. Users don't just need heart rate curves and sleep scores; they need answers to "Why is my performance low today?", "Should I train?", "How should I recover?", and "Which habits are impacting my long-term health?"

The value of AI is turning fragmented data into personalized judgments, transforming a one-time hardware purchase into an ongoing service relationship.

This means future competition will go beyond sensors, battery life, and price. It will hinge on the convergence of three core capabilities:

1. Can the hardware capture high-quality data continuously, reliably, and with minimal disruption?
2. Can AI interpret that data into trustworthy, personalized, and actionable decisions?
3. Can the service consistently deliver visible improvements, encouraging users to stay in the ecosystem long-term?

The brands that truly succeed will be those that close the loop between hardware capture, AI interpretation, and service delivery—shifting users from simply "buying a device" to "continuously gaining health and fitness management value."