A report from Counterpoint Research reveals a global decline in smartwatch sales for the first time in 2024, with shipments dropping by 7% compared to the previous year and a 9% decrease in the fourth quarter of 2024 compared to the previous year, marking a consecutive quarterly decline.
One factor contributing to the global drop in shipments is the decline in Apple Watch shipments by 19%, partly due to the lack of new features, the non-launch of the expected Ultra 3 model, and being banned in the United States due to patent disputes, resulting in a 23% revenue decrease in the fourth quarter of 2024 compared to the previous year and a drop in market share from 25% to 22%.
Additionally, the market in India is another contributing factor to the decrease in shipments, as the demand for affordable local devices decreased, resulting in a decrease in market share from 30% to 23%.
Despite the overall market downturn, Chinese brands like Xiaomi, Huawei, and BBK (Imoo) have seen growth, with China’s global smartwatch sales share increasing from 19% to 25%, surpassing India and North America for the first time due to the increasing popularity of kids smartwatches, as seen in Imoo’s 22% increase in shipments specializing in kids smartwatches.
While Xiaomi’s shipments increased by 135%, making it the fastest-growing brand in the top five in the fourth quarter of 2024, gaining popularity in price-sensitive regions like Southern Europe and Eastern Europe.
Counterpoint predicts a slight recovery in the smartwatch market in 2025 due to advancements in AI features and expanded health data tracking capabilities.
TLDR: Global smartwatch sales saw a decline in 2024, attributed to factors like reduced Apple Watch shipments and market changes in regions like India, while Chinese brands like Xiaomi experienced significant growth, with a predicted market recovery in 2025.
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