Key Takeaways
1. Global smartwatch shipments declined by 7% in 2024, marking the first downturn in the sector, primarily due to Apple’s fading momentum and sluggish upgrade cycles.
2. China emerged as the largest market for smartwatch shipments, surpassing North America and India, driven by local brands like Huawei, Xiaomi, and BBK’s Imoo.
3. Apple faced significant challenges, with a 19% drop in Apple Watch shipments due to unimpressive upgrades and legal disputes, while competitors like Samsung and Xiaomi experienced growth.
4. Kids’ smartwatches gained popularity, with brands like Imoo leading the market, as parents seek ways to connect with and track their children.
5. Analysts predict a gradual recovery in the smartwatch market by 2025, driven by AI-enhanced features and advanced health sensors, but brands must adapt to remain competitive.
The smartwatch market has recently encountered a significant hurdle. After years of uninterrupted growth, global shipments of smartwatches saw a decline of 7% in 2024, which is the first downturn ever recorded in this sector. Counterpoint Research indicates that this drop was primarily due to Apple’s fading momentum, sluggish upgrade cycles, and a decrease in the basic smartwatch category, especially in India.
China Takes the Lead
Despite the overall market shrinkage, China made impressive gains. For the very first time, the nation surpassed North America and India to seize the largest portion of global smartwatch shipments. This surge was powered by local companies like Huawei, Xiaomi, and BBK’s Imoo, who tapped into the growing engagement of Chinese consumers.
Apple’s Challenges Amidst Competition
Apple, long recognized as the leading smartwatch provider, managed to retain its position, but not without challenges. Shipments of the Apple Watch fell by 19% year-on-year, hindered by unimpressive upgrades in the Series 10 and the unexpected lack of an Ultra 3 model. Legal disputes also complicated the situation, limiting shipments during the first half of the year. In North America, where Apple usually dominates, many buyers chose to wait for more significant innovations before making a purchase.
In contrast, Samsung quietly improved its standing, experiencing a 3% year-on-year growth, thanks to an expanded Galaxy Watch lineup, which now includes the first Galaxy Watch Ultra. Xiaomi made even bigger strides, emerging as the fastest-growing smartwatch brand in 2024 and breaking into the top five global rankings for the first time. This success can be attributed to an aggressive expansion of its product range, with models like the Watch S1 and Redmi Watch gaining popularity across various regions.
The Rise of Kids’ Smartwatches
While many smartwatch segments faced challenges, one area bucked the trend: kids’ smartwatches. Brands like Imoo led the market, catering to the increasing demand from parents wanting a convenient way to keep track of and connect with their children. Even brands traditionally aimed at adults, such as Noise, boAt, and Fitbit, have begun to shift their focus towards this expanding segment.
Even though the market has seen its first decline, the outlook isn’t entirely negative. Analysts predict a gradual recovery in 2025, with single-digit growth anticipated from AI-enhanced features and next-generation health sensors. Expect smarter heart monitoring, sleep apnea detection, and even early warnings for diabetes. However, to stay competitive, brands will need to strive harder for regulatory approvals and push the limits of smartwatch capabilities.
The smartwatch industry isn’t finished—it’s merely transforming. If you’re in the market for a new Wear OS smartwatch, don’t forget to check out our latest piece on the 7 best Wear OS smartwatches of 2025.
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