Counterpoint: Global smartwatch shipments to drop 7% in 2024

According to the latest tracking report from Counterpoint, global smartwatch shipments fell 7% year-on-year in 2024, marking the first decline in the market. The decline is mainly attributed to the decline in Apple's shipments and the reduction in demand for upgrades in the slowing basic smartwatch industry. The weakness in the basic smartwatch market stems from India, where consumer demand has weakened due to slow replacement cycles, lack of innovation, and poor user experience for first-time buyers.

Apple maintained its global market leadership with its growing iOS user base. Samsung grew 3% year-on-year, with strong performance from its new Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series. Xiaomi stood out, achieving the fastest growth in 2024 and entering the top five for the first time.

Commenting on Apple's performance, Senior Research Analyst Anshika Jain said: "Despite the launch of the S10 series, the Apple Watch lost momentum on its 10th anniversary. The biggest factor in the decline was the North American market, where consumers delayed purchases due to the absence of the Ultra 3 and limited feature upgrades in the S10 series. In addition, patent disputes limited shipments in the first half of the year. The slowdown in the existing Apple Watch SE series and the lack of new SE models also contributed to the decline."

Jain added, “Regionally, China recorded its highest ever shipments for the first time in 2024, surpassing North America and India. Huawei, Imoo and Xiaomi are the market leaders in China. Their diverse product portfolios, ranging from basic, premium to kids smartwatches, and the preference of Chinese consumers for these brands are driving the overall adoption rate.”

Commenting on the different smartwatch segments, Research Analyst Balbir Singh said, “Only the kids smartwatch segment witnessed growth and Imoo retained its market leadership with its affordable and feature-rich products. The kids smartwatch segment is gaining traction as parents are concerned about their children’s safety and want to track and stay connected with them constantly. With the decline of basic smartwatches, other brands such as Noise, boAt and Google’s Fitbit have started diversifying their product portfolio to include kids smartwatches. This bodes well for diversification in the market and indicates further growth in the future.”