Smartwatch Market Stumbles: Apple Faces Significant Decline as Competitors Gain Ground
Global smartwatch shipments saw their first decline in 2024, with Apple leading the fall despite maintaining its market share, as tougher competition and patent issues took a toll.
By Blip Tech
1 min read
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.
