Apple Watch Shipments Decline 19% as Competitors Gain Ground

Apple Watch shipments experienced a significant 19% year-over-year decline in 2024, marking the second consecutive year of downturn, according to Counterpoint Research.

This decline contributed to a 7% drop in global smartwatch shipments—the first-ever annual decrease in the market. Several factors contributed to Apple’s shipment slump:

• Lack of New SE Model: The absence of an updated Apple Watch SE since Q3 2022 impacted sales, as the SE line typically drives significant volume post-launch.
• Minimal Upgrades in Series 10: The Apple Watch Series 10, launched in 2024, offered limited enhancements, leading to a slowdown in consumer upgrades.
• Absence of Watch Ultra 3: The anticipated Apple Watch Ultra 3 was not released, affecting sales of Apple’s premium smartwatch segment.
• Patent Disputes: Legal challenges, including disputes over ECG technology, led to import bans on certain Apple Watch models in the U.S., impacting shipments in the first half of the year.

While Apple faced challenges, competitors capitalized on the opportunity. Huawei achieved a 35% year-over-year growth, capturing a 13% market share, while Xiaomi recorded a remarkable 135% year-over-year growth, entering the top five global smartwatch manufacturers for the first time.

Samsung also experienced a 3% year-over-year growth, driven by the success of its Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series.

In terms of market, China emerged as the largest smartwatch market in 2024, surpassing North America and India, fueled by strong performances from local brands like Huawei, Xiaomi, and Imoo.

Counterpoint Research anticipates a gradual recovery in the global smartwatch market, projecting single-digit growth in 2025. For Apple to regain momentum, the introduction of a redesigned SE model and the launch of the Watch Ultra 3 are deemed crucial