For the first time in history, the global smartwatch market has experienced a decline, as reported by Counterpoint Research. In 2024, smartwatch shipments fell by 7% compared to the previous year, signaling a significant shift. This marks a notable change, as the smartwatch sector had shown consistent growth in previous years, but now declined. Despite the overall downturn, some brands have performed better than others, with Apple maintaining its lead in the market. However, even Apple saw a 19% drop in shipments, a significant decrease for the tech giant.
Huawei, on the other hand, experienced a remarkable 35% increase in smartwatch shipments, thanks to its diverse portfolio of devices. This includes basic wearables, advanced smartwatches, and even devices designed specifically for children, appealing to a broader market. Huawei’s dominance is especially notable in its home market of China, where it continues to maintain a strong foothold. The brand’s growth is a result of its strategy to target both high-end and budget-conscious consumers.
Samsung, holding third place in global smartwatch shipments, saw modest growth of 3%, largely driven by its Galaxy Watch series. This increase in shipments can be attributed to the success of its Galaxy Watch 7 and Galaxy Watch Ultra models. These models have gained traction in markets worldwide, contributing to Samsung’s stable performance in the smartwatch segment. Although the growth is not as sharp as Huawei’s, Samsung still maintains a solid position in the competitive market.
Meanwhile, Xiaomi achieved the most impressive growth, with shipments increasing by a staggering 135% in 2024, expanding rapidly in global markets. This surge in Xiaomi’s performance is partly attributed to its expanding presence in regions like Europe and Southeast Asia. The brand’s budget-friendly smartwatches have become increasingly popular in these markets, where consumers are seeking affordable yet feature-rich options. Xiaomi’s strategy of offering competitive pricing and innovative features has propelled it to new heights in the smartwatch market.
The global decline in smartwatch shipments can largely be attributed to a slowdown in India, once a thriving market for smartwatches. In 2024, the country saw slower consumer demand, mainly due to factors like a longer replacement cycle. Additionally, fewer innovations in entry-level models and less-than-satisfactory experiences among first-time buyers contributed to the sluggish growth in the Indian market. These challenges have led to a decline in overall demand for smartwatches in one of the largest global markets.
On a positive note, the Chinese market emerged as the largest single market for smartwatches, a first in industry history. The Chinese market saw a year-over-year growth of 6%, driven by strong performances from brands like Huawei, Imoo, and Xiaomi. These companies have capitalized on local demand for affordable and feature-rich smartwatches, making China a dominant player in the global smartwatch landscape. This shift signals China’s growing importance in the smartwatch industry.
Looking ahead, analysts expect the smartwatch market to gradually recover, with a strong focus on emerging technologies like artificial intelligence and advanced health-monitoring features. The introduction of more precise fitness tracking and AI-driven functionalities is expected to generate renewed consumer interest in smartwatches. This growth is projected to be driven by new, innovative features, which could rejuvenate the market and lead to a rebound by 2025.
