Global smartwatch sales have declined for the first time, with shipments falling 7% in 2024 compared to the previous year, according to market research firm Counterpoint. The decline is largely attributed to a sharp drop in Apple’s sales, which fell by 19%. Analysts point to the lack of new features in Apple’s latest devices and the absence of a highly anticipated Ultra 3 model as contributing factors.
In contrast, Chinese-made smartwatches from brands like Xiaomi, Huawei, and Imoo have seen significant growth. In China, these brands now account for over 25% of the market share, surpassing India and North America. The popularity of affordable smartwatches has driven this growth, particularly among parents looking to purchase devices for their children.
The Indian market also saw a decline, falling from 30% to 23%, largely due to a “bubble” in ultra-cheap devices that have lost consumer trust. Analysts expect the global market to experience single-digit percentage growth in 2025, driven by advancements in AI features and a focus on providing more health data.
In a statement, Counterpoint’s senior research analyst Anshika Jain attributed the decline to North America, where consumers were deterred from purchasing due to the absence of an Ultra 3 model and minimal feature upgrades. Meanwhile, Imoo’s children’s smartwatches have seen a significant rise in shipments, driven by growing concerns over children’s safety and the desire for constant parental connection.
Xiaomi has been successful in capturing market share through its affordable Smart Band activity trackers, which offer significant value compared to rival devices from Apple and Samsung. However, analysts warn that these low-margin players risk driving away consumers seeking higher margins.
Source: https://www.bbc.com/news/articles/cx20d3r7p5do