Global smartwatch sales have fallen for the first time ever. Research firm Counterpoint reports a 7% drop in shipments worldwide in 2024. Apple, the leader in the industry, suffered the most.
Apple’s Sales Decline
Apple saw a 19% drop in smartwatch shipments in 2024. Its market share fell from 25% to 22% in the last quarter of the year.
Experts say this happened because Apple’s new watches lacked big changes. Many customers waited for the Ultra 3, but Apple never released it. This made buyers hesitant to upgrade.
Apple also faced legal problems. The company had a sales ban in the U.S. in late 2023 and early 2024. The ban came from a patent fight over its blood oxygen feature. This made Apple’s smartwatch sales suffer even more.
North America’s Role in the Drop
North America played a major part in the smartwatch market decline. Customers delayed their purchases. The small updates in Apple’s S10 series did not excite buyers. The missing Ultra 3 also disappointed fans.
The U.S. sales ban made things worse. Apple lost a lot of potential sales in early 2024. Without the blood oxygen feature, some customers chose to wait or buy from other brands.
Chinese Brands See Growth
While Apple struggled, Chinese brands gained ground. Xiaomi, Huawei, and Imoo saw their sales rise in 2024.
Xiaomi was the biggest winner. The company saw a 135% increase in shipments. Xiaomi’s Smart Band trackers offer basic smartwatch features at low prices. This made them a favorite in regions where cost matters.
Imoo also did well. Known as “Little Genius” in China, its smartwatches for kids grew in popularity. Shipments rose by 22%. Parents are buying more smartwatches to track their children and stay in touch with them.
China Becomes the Biggest Market
China’s smartwatch market share jumped from 19% to 25%. This made it the top smartwatch market, beating India and North America.
The reason? Chinese brands offered affordable options. Many customers in China, Eastern Europe, and other regions picked Xiaomi and Huawei over premium brands like Apple and Samsung.
India’s Market Shrinks
India’s smartwatch market took a big hit. It dropped from 30% to 23% in 2024.
Experts say the fall happened because of cheap, low-quality smartwatches. Many Indian brands made budget watches that did not last long. Buyers became unhappy with poor performance. Now, brands are focusing on making better-quality devices.
Why Smartwatch Sales Are Slowing
CS Insight analyst Leo Gebbie says smartwatches are no longer seen as exciting. Their features have stayed the same for years. People are not rushing to buy new ones.
Most new smartwatches offer small updates. Without big improvements, buyers are holding on to their old watches longer.
What’s Next for the Market?
Counterpoint predicts smartwatch sales will recover a little in 2025. Growth may come from AI features and better health tracking.
Experts believe companies will focus on small but useful updates. AI-powered assistants and improved health sensors could attract new buyers.
The smartwatch market is changing. Apple is facing setbacks, while Chinese brands are growing. China has taken the top spot in sales, while India’s market has shrunk.
As smartwatch features become more stable, sales may slow. But new AI and health-tracking features could bring some growth in 2025.
For more tech news updates, visit New York Mirror.