Nobody really thought smartwatches were going to be a thing. A watch that you’d have to charge every day? It seemed like a ridiculous idea, but yet, the wearables category took off. However, for the first time ever, the global smartwatch market drops in terms of overall shipments, according to the latest figures by Counterpoint.
Apple’s still in the lead
According to Counterpoint Research’s latest Global Smartwatch Shipments Tracker, smartwatch shipments fell 7% year-over-year in 2024. This marks the market’s first-ever downturn. It seems that Apple had a big role to play in this. The company’s Apple Watch saw a drop of 19% in shipments.
However, despite the decline, Apple remained the top player in the global smartwatch market. This is thanks to its growing iOS user base. Counterpoint’s Senior Research Analyst Anshika Jain highlighted North America as the biggest culprit of Apple’s decline. The absence of the Apple Watch Ultra 3 and minimal feature upgrades in the Apple Watch Series 10 led consumers to hold off on new purchases. Additionally, Apple has been hit with patent disputes, which impacted its shipments in the first half of the year.
The analyst also cites the lack of a new Apple Watch SE model that contributed to Apple’s slowdown.
But not everyone experienced similar downturns like Apple. Samsung posted 3% year-over-year growth, thanks to the Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE Series. Xiaomi also made waves, recording its fastest growth in 2024 and breaking into the top five global smartwatch brands for the first time.
China also recorded the highest-ever smartwatch shipments, surpassing North America and India in 2024. Brands like Huawei, Imoo, and Xiaomi led the charge, largely thanks to their diverse product offerings, which include kid-focused smartwatches.
Kids’ smartwatch segment on the rise
What’s interesting about this data is that the kids’ smartwatch segment was the only category to experience growth. Chinese companies like Imoo dominated this space. Its products attracted parents looking for affordable, feature-packed smartwatches to track and stay connected with their kids.
According to Counterpoint Associate Director David Naranjo, he predicts a gradual recovery for the smartwatch market in 2025. He expects to see single-digit growth. He also expects that more manufacturers will integrate AI features and advanced health sensors into their wearables in the future.
