Global smartwatch sales fall for first time, Apple hit hardest
What's the story
Global smartwatch sales have declined for the first time. According to Counterpoint Research, device shipments in 2024 declined by 7% compared to the previous year.
The market leader, Apple, saw a massive drop in its watch shipments by 19%, mainly due to lack of new features and absence of an anticipated high-end Ultra 3 model.
Market analysis
Apple's North American sales impacted by feature stagnation
Anshika Jain, a senior research analyst at Counterpoint, attributed the decline in smartwatch sales to several factors.
"The biggest driver of the decline was North America," she stated.
Jain explained the absence of the Ultra 3 and minimal feature upgrades in the Series 10 lineup led consumers to delay purchases.
Additionally, a patent dispute over blood oxygen level monitoring resulted in US sales and import bans on Apple products during late 2023 and early 2024.
Expert insight
Market stabilizes as smartwatch feature sets remain consistent
CCS Insight's principal analyst, Leo Gebbie, gave more insight into the current smartwatch market.
He said, "We've been through a period where the smartwatch has gone from being a new and exciting gadget, to something now that's stabilizing - the feature set isn't changing very dramatically year over year."
This is also reflected in Counterpoint's data which shows Apple retaining 22% of market share in Q4 2024, down from 25% in 2023.
Market shift
Chinese brands thrive amid global sales decline
Despite the overall market downturn, Chinese brands like Xiaomi, Huawei, and Imoo witnessed a massive surge in smartwatch sales last year.
Their market share in China increased from 19% to 25% during the same period.
It was also the first time China recorded more smartwatch sales than India or North America.
Notably, smartwatches designed for kids were the only segment to see growth in 2024.
Children's market
Xiaomi leads the charge in children's smartwatch segment
Imoo, or "Little Genius" as it is called in China, focuses on children's smartwatches and witnessed a 22% growth in shipments.
However, Xiaomi trumped the competition with a whopping 135% increase in shipments.
"Xiaomi has done a really good job of selling devices, particularly in regions like southern and eastern Europe where that greater affordability tends to resonate a lot more strongly with customers," Gebbie said.
Market changes
India also sees a drop in smartwatch market share
India, another major player in the global smartwatch market, witnessed its share decline from 30% to 23%.
This was due to a "bubble" of ultra-cheap devices from Indian manufacturers, which has now burst.
Counterpoint's Balbir Singh noted consumer complaints regarding device quality and said companies could benefit from producing items with longer lifespans.