Smartwatch Shipments Plummet Amid Market Shifts
Global smartwatch shipments experienced a significant decline of 7 percent year-on-year (YoY) in 2024, as reported by market research firm Counterpoint. Despite this downturn, Apple maintained its lead in worldwide shipments, followed closely by Huawei and Samsung. Notably, Xiaomi emerged as a standout performer, achieving remarkable growth and entering the top five for the first time.
Apple’s Dominance Faces Challenges
According to Counterpoint Research’s latest Global Smartwatch Shipments Tracker for Q4 2024, the smartwatch market has faced its first decline in sales. Apple, while still holding the top position, saw a 19 percent YoY drop in shipments. This decline is attributed to the slowdown of the Apple Watch SE lineup and the absence of new models in this category. Despite these challenges, Apple remains a dominant force in the market, but the decrease in shipments signals a need for innovation to maintain its leading status.
Chinese Brands Surge in Popularity
In contrast to Apple’s struggles, several Chinese brands have reported impressive growth. Huawei secured the second spot with a 35 percent YoY increase in shipments, driven by the popularity of its latest smartwatch offerings. Samsung, in third place, achieved a modest 3 percent growth, largely due to the successful adoption of its Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series. Xiaomi, however, led the charge with a staggering 135 percent YoY growth, propelled by the strong performance of its Watch S1 and Redmi Watch series. Additionally, Imoo recorded a commendable 22 percent growth, highlighting the shifting dynamics in the smartwatch market.
Market Trends and Regional Insights
The report indicates a notable decline in the basic smartwatch segment, particularly in India, where consumer demand has weakened. Factors contributing to this decline include a slow replacement cycle, lack of innovation, and unsatisfactory user experiences among first-time buyers. As a result, India’s market share in global smartwatch shipments fell from 30 percent in 2023 to 23 percent in 2024. Conversely, China achieved record shipments, surpassing both India and North America, with brands like Huawei, Imoo, and Xiaomi leading the charge. The growing popularity of smartwatches for children also reflects changing consumer preferences in the market.
Future Outlook for Smartwatches
Looking ahead, Counterpoint analysts predict a gradual recovery for the smartwatch market in 2025. They anticipate single-digit percentage growth as both Android and iOS smartwatches are expected to incorporate advanced AI capabilities and sensors for enhanced health monitoring. David Naranjo, Associate Director at Counterpoint Research, emphasized the importance of integrating new health features and obtaining regulatory approvals for new models to sustain market positions. Innovations aimed at tracking serious health conditions, such as atrial fibrillation and sleep apnea, are likely to shape the future of smartwatches.
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