Global Smartwatch Market Shrinks for the First Time—Apple Takes the Biggest Hit!
For the first time since smartwatches hit the market, global shipments have fallen, marking a 7% decline in 2024, according to Counterpoint Research. While Apple remains the industry leader, it wasn’t immune to the slowdown, with Apple Watch shipments dropping 19% year-over-year—one of the most significant declines among major brands.
Why Are Smartwatch Sales Slipping?
Several factors contributed to the unexpected downturn in smartwatch demand:
- Lack of Major Innovations – The Apple Watch Series 10 introduced only minor upgrades, failing to excite consumers enough to upgrade their devices.
- Stronger Competition – Huawei, Xiaomi, and Samsung have ramped up their smartwatch offerings, providing compelling alternatives at competitive price points.
- Patent Disputes – Apple faced legal challenges over key health-monitoring features, causing production disruptions and slowing sales.
- Market Saturation – Many first-time buyers, particularly in emerging markets, did not see a reason to upgrade, leading to declining demand in regions like India.
China Becomes the Largest Smartwatch Market
A major shift in regional smartwatch demand has reshaped the industry. China has now surpassed both North America and India to become the biggest smartwatch market, driven by local brands like Huawei and Xiaomi, which continue to gain market share.
Meanwhile, India—one of the fastest-growing smartwatch markets in recent years—saw a slowdown as customer interest cooled and first-time buyers did not return for upgrades.
Will Smartwatches Make a Comeback in 2025?
Despite the drop in shipments, analysts expect a modest recovery in 2025, fueled by new AI-powered health features that could reignite consumer interest. Apple is rumored to be working on advanced health monitoring, including sleep apnea detection and blood pressure tracking, which could make future Apple Watch models more appealing.
The big question now is: Can Apple and other smartwatch makers introduce innovations that will get consumers excited again? With wearable technology playing a key role in health tracking, the industry’s next move could determine whether smartwatches remain a must-have device or become just another tech trend that fades over time.
