Analytics firm Counterpoint Research dropped its latest report around global smartwatch shipments in Q4 2024, suggesting the market shipments declined (by 7%) for the first time. Apple, which saw a year-over-year decline of 19%, managed to grab the top position in the global shipment market share.
The report shows that Apple's downward trajectory is primarily due to higher competition and weaker upgrade cycles. This becomes surprising when the drop comes at a time when Apple Watch celebrated its 10th anniversary with the Series 10.
Several reasons are contributing to the decline. The absence of Apple Watch Ultra 3 and minimal feature upgrades in the Apple Watch Series 10 remained significant factors for North American customers to hold back purchases, where Apple took the biggest hit.
The Cupertino giant hasn't refreshed the Apple Watch SE, which also fueled the decline. Now, with the iPhone 16e on the market, the future of the SE brand itself remains in the dark.
Counterpoint's data corroborates previous reports suggesting Apple is on a downward trajectory as it shipped around 800,000 fewer smartwatches. Apple also faced a patent dispute with Masimo last year, resulting in the Apple Watch's blood oxygen monitoring feature being banned in the US. The company recently avoided an import ban in another patent dispute case with AliveCor.
The report notes that the kids' smartwatch section is the only one to record "growth with Imoo remaining the market leader driven by its affordable, feature-rich offerings." More concerned parents desire to keep track of their children and remain constantly connected with them.
Samsung saw a 3% year-over-year growth in global shipment share, followed by strong adoption of its Galaxy Watch7, Galaxy Watch Ultra, and Galaxy Watch FE. The South Korean giant partnered with Google to launch a kid-friendly experience for the Galaxy Watch7.
Speaking of region-wise performance, China emerged as the highest market share holder in global shipments for the first time, the report says, surpassing North America and India. Huawei, Xiaomi, and BBK (Imoo) were among the forerunners of the Chinese market.
The global smartwatch market is expected to recover slowly in 2025 and see a single-digit growth. Android and iOS smartwatches could add more AI features and advanced sensors to offer deeper insights into health data, such as those for "measuring bodily signals such as serious heart health tracking, focusing on atrial fibrillation, sleep apnea, hypertension, and diabetes."
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