Apple Watch Sales Drop 19% Amid Global Smartwatch Market Decline

According to Counterpoint’s Smartwatch Shipments Tracker by Model, Q4 2024, the global smartwatch market experienced its first-ever decline in 2024, with shipments dropping by 7% year-over-year.

This downturn was primarily driven by a significant decrease in Apple Watch shipments, which fell by 19% compared to the previous year.

Despite the overall market contraction, Apple maintained its leading position in the smartwatch industry. However, the substantial decline in its shipments raised concerns among analysts and consumers alike. Several factors contributed to this downturn:

• Lack of Significant Upgrades: The Apple Watch Series 10, launched in September 2024, featured a larger 46mm OLED display and a slimmer design. While these enhancements were notable, they were perceived as incremental by many consumers, leading to a slowdown in upgrade cycles.
• Absence of the Ultra 3 Model: The anticipated Apple Watch Ultra 3 was not released in 2024, which may have dampened enthusiasm among potential buyers seeking more advanced features.
• Patent Disputes: Legal challenges related to patent disputes limited Apple’s ability to ship certain models in the first half of the year, affecting overall sales.
• Competition from Other Brands: Competitors like Samsung and Xiaomi introduced feature-rich smartwatches at competitive prices. Samsung’s Galaxy Watch 7, Watch Ultra, and Watch FE series saw strong adoption, contributing to a 3% year-over-year growth for the company.

Meanwhile, Xiaomi experienced the fastest growth in 2024, propelled by its Watch S1 and Redmi Watch series, securing a spot among the top five smartwatch manufacturers for the first time.

For the first time, China surpassed North America and India to become the largest smartwatch market globally. Chinese brands such as Huawei, Imoo, and Xiaomi led this growth, offering diverse portfolios ranging from basic to advanced smartwatches.

Despite the decline in 2024, the smartwatch market is expected to recover slowly, with projections indicating single-digit percentage growth in 2025. Both Android and iOS smartwatches are anticipated to integrate more AI capabilities and advanced sensors to provide deeper insights into health data.