Global smartwatch sales have seen their first-ever decline, with Apple experiencing a significant drop in popularity. According to recent data, the worldwide market for smartwatches dropped by 7% in 2024 compared to the previous year, primarily driven by a 19% reduction in Apple’s shipments.
Apple’s Decline: A Result of Lack of Innovation
Market research firm Counterpoint attributes Apple’s significant drop in sales to the absence of key innovations and the much-anticipated Ultra 3 model. The company had hoped to ride the wave of product upgrades, but the lack of new features in its S10 series and the delayed Ultra 3 model left many consumers uninterested.
Anshika Jain, Senior Research Analyst at Counterpoint, explained, “The biggest factor behind this downturn was North America. The missing Ultra 3 and minimal improvements in the S10 series discouraged consumers from upgrading.”
Additionally, Apple faced another setback in late 2023 and early 2024, as the company encountered sales and import bans in the U.S. due to a patent dispute concerning blood oxygen monitoring technology. These legal issues further hindered Apple’s performance in the first half of 2024.
As a result, Apple’s market share in smartwatches dropped from 25% to 22% by the end of 2024, signaling a significant shift in the global market.
Chinese Smartwatch Brands Experience Growth
While Apple’s decline dominated headlines, several Chinese manufacturers, including Xiaomi, Huawei, and Imoo, experienced substantial growth in 2024. Counterpoint’s data shows that China’s share of global smartwatch sales increased from 19% to 25%, surpassing both India and North America in the process.
The rise of Chinese brands can be attributed to a variety of factors, including affordability and a shift in market demand. Notably, Chinese companies have tapped into the growing niche of children’s smartwatches, which was the only segment of the market to show growth in 2024.
Imoo, known as “Little Genius” in China, specializes in smartwatches designed for children. The company saw a 22% increase in shipments, capitalizing on parents’ desire for products that help them stay connected and ensure the safety of their kids.
Counterpoint’s Balbir Singh noted, “The children’s smartwatch category is thriving as parents prioritize safety and want to stay connected with their kids.”
In addition to Imoo, Xiaomi experienced a staggering 135% growth in shipments. Unlike Apple and Samsung, which focus on high-profit margins, Xiaomi has gained traction by offering affordable fitness trackers and smartwatches that appeal to price-conscious consumers, particularly in regions like southern and eastern Europe.
Leo Gebbie, Principal Analyst at CCS Insight, explained, “Xiaomi has successfully sold affordable devices, especially in southern and eastern Europe, where price sensitivity plays a major role.”
India’s Market Contraction Adds to Global Decline
India, which was once the driving force behind global smartwatch growth, experienced a decline in its share of the global market. In 2024, India’s market share dropped from 30% to 23%. Analysts attribute this contraction to an influx of low-cost Indian-made smartwatches, which flooded the market but were met with consumer dissatisfaction.
Leo Gebbie pointed out, “There was a wave of complaints about device quality. Many buyers felt disappointed.” This dissatisfaction led to a shift in the market as some Indian companies began focusing on creating higher-quality, longer-lasting products.
A Modest Recovery Expected in 2025
Despite the overall decline in smartwatch sales, there is optimism for a modest recovery in 2025. Counterpoint predicts that the market will experience single-digit growth, driven by innovations like AI-powered features and an increased focus on health tracking capabilities.
This anticipated rebound offers hope for brands and manufacturers who are adapting to evolving consumer demands, focusing on value and quality to remain competitive.
