Smartwatch Market Stumbles: Apple Faces Significant Decline as Competitors Gain Ground

Global Smartwatch Market Declines in 2024 For the first time ever, global smartwatch shipments declined by 7% in 2024, according to a report by Counterpoint Research. Apple, despite maintaining its leading market share, experienced a significant 19% year-over-year drop in shipments, particularly in North America due to the absence of anticipated models and limited new features.

Factors Affecting Apple's Performance

• Tougher Competition: Samsung and Xiaomi gained ground with modest and substantial shipment increases, respectively.
• Minimal Upgrades: The S10 lineup lacked significant advancements.
• Patent Issues: Legal battles with AliveCor and Masimo led to import bans on certain models.
• Sluggish SE Lineup: No updates to entry-level models dampened consumer interest.

Market Trends

• China's Rise: China became the leading smartwatch market, driven by local brands like Huawei, Xiaomi, and Imoo.
• Samsung and Xiaomi: Samsung saw a 3% increase in shipments with new models, while Xiaomi entered the top five globally.

Future Outlook

Counterpoint predicts a slow recovery for the smartwatch market in 2025, with modest single-digit growth. Advanced AI capabilities and enhanced health sensors, such as those addressing atrial fibrillation, sleep apnea, hypertension, and diabetes, are expected to drive interest and regulatory approvals.