Apple Watch Shipments Plummet 19% in 2024 Amid Growing Competition

In a significant blow to Apple’s smartwatch dominance, global Apple Watch shipments dropped by 19% year-over-year in 2024, marking the second consecutive year of decline, according to a new report from Counterpoint Research. The market research firm’s Global Smartwatch Shipments Tracker for Q4 2024 highlights a stark contrast to the growth enjoyed by competitors like Huawei and Xiaomi, which saw increases of 35% and 135% respectively during the same period.

The decline follows a 10% drop in 2023, reflecting a broader stagnation in the global smartwatch market, which fell 7% overall in 2024—the first annual decline in the sector’s history. Counterpoint attributes Apple’s downturn to several factors, primarily a lack of compelling upgrades in the Apple Watch Series 10, priced at $399, and the absence of new models in the Watch SE and Watch Ultra lines. North America, which accounts for over half of Apple’s smartwatch shipments, drove the decline, with consumers showing reluctance to upgrade due to minimal new features and growing price sensitivity.

Despite Apple’s struggles, the report notes two bright spots in the smartwatch industry. India emerged as the only region where Apple Watch shipments grew, surging by 141% in 2024, a sharp rebound from a 57% decline in 2023. This growth aligns with the iPhone’s expanding market share in the country and a trend toward premium smartwatches, which saw a 147% increase in shipments. Additionally, the kids’ smartwatch segment was the only category to experience global growth, rising due to increased parental awareness and brand expansion, with companies like Imoo (a BBK brand) leading the charge.

Counterpoint warns that Apple’s challenges may intensify in 2025 due to new tariffs, which could raise prices, disrupt availability, or complicate manufacturing. The firm suggests that Apple could reverse its fortunes by introducing new Watch SE and Watch Ultra models, alongside significant design and feature upgrades to rekindle consumer interest.

The global smartwatch landscape is shifting, with China overtaking North America and India to claim the largest shipment share in 2024, driven by strong performances from Huawei, Xiaomi, and Imoo. Meanwhile, Samsung reported a modest 3% growth, buoyed by its Galaxy Watch 7, Watch Ultra, and Watch FE series. Apple, however, saw its market share in the advanced smartwatch segment shrink by 8 percentage points, with the Watch Ultra’s share dipping below 8% from its usual 10%+.

Analysts at Counterpoint remain cautiously optimistic, forecasting a modest single-digit growth for the smartwatch market in 2025, potentially driven by advanced AI features and enhanced health sensors in future models. Apple’s ability to innovate and adapt will be crucial as it navigates an increasingly competitive landscape.