For the first time in history, global smartwatch shipments fell on a quarterly basis, falling 7% in the final quarter of last year. According to a report by Counterpoint, the decline was mainly due to lower shipments from Apple, a slowdown in the refresh of available models, and weak consumer demand in India, driven by a poor user experience among first-time buyers.
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Despite the overall market decline, Apple retained the top spot, although its shipments fell by 19%. Huawei, according to GSMArena, took the second place with shipments growing by 35%, thanks to strong sales in the Chinese market and a wide range of products, including basic wearables and smartwatches for kids.
Samsung, on the other hand, saw 3% year-on-year growth following the successful launch of the new Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE Series, taking third place. Xiaomi saw the fastest growth of all manufacturers in 2024, entering the top five for the first time with 135% year-on-year shipment growth.
Image source: Counterpointresearch.com
It is noted that the decline in Apple Watch sales occurred despite the brand’s 10th anniversary and the release of Watch Series 10. The main reason for the decline was the situation in North America: the lack of the Ultra 3 model and minor improvements in the S10 forced consumers to postpone purchases. In addition, patent litigation limited shipments in the first half of the year. An additional negative impact was the lack of new Apple Watch SE models.
In terms of regional differences, China recorded the highest shipments for the first time, overtaking North America and India in 2024. Huawei, Imoo, and Xiaomi became the market leaders. The smartwatch market is expected to start recovering in 2025, thanks to closer integration of artificial intelligence and advanced health monitoring capabilities in wearables.
Image source: Counterpointresearch.com