Apple (NASDAQ:AAPL) is slipping, and the smartwatch market is shifting fast. The tech giant still holds the crown as the top global smartwatch brand, but its market share slid from 25% to 22% in 2024, with shipments down 19% year-over-year. According to Counterpoint Research, the smartwatch market saw its first-ever decline, and Apple was the main culprit. Lackluster upgrades, the absence of a new Apple Watch Ultra 3, and a drawn-out patent dispute that blocked sales of its flagship models all played a role. Meanwhile, competitors didn’t just hold steadythey surged ahead, taking advantage of Apple’s missteps.
Samsung’s Galaxy Watch series saw 3% YoY growth, helped by the Watch 7, Watch Ultra, and Watch FE. But the real winners? Chinese brands. Xiaomi’s (XIACY) smartwatch shipments skyrocketed 135%, while Huawei grew 35% and now commands a 13% global market share. Apple may have led the smartwatch revolution, but these upstarts are now setting the pace. Huawei, for instance, has already outpaced Apple in sensor technology, offering blood pressure monitoringsomething Apple is still working on. And with China now the biggest single market for smartwatches, this momentum isn’t slowing down.
Apple’s next big swing could be game-changingor too little, too late. The company is reportedly working on non-invasive blood glucose monitoring, a move that could reset the playing field if executed well. But competition is closing in fast. Startups like Novosound are already rolling out next-gen wearable sensors that could leapfrog Apple’s tech. With smartwatch shipments shrinking and rivals gaining ground, Apple has a choice: innovate fast or watch its dominance fade. Investors will be watching closely.
This article first appeared on GuruFocus.
