The Apple Watch, a popular device since its 2015 debut, has recently experienced a downturn in sales. New data from Counterpoint Research reveals a 19% year-on-year decline in Apple Watch shipments for 2024. This decrease affected all regions except India, with North America, Apple’s largest market for smartwatches, experiencing the most significant drop.
This marks the second consecutive year of declining sales for the Apple Watch. In fact, the final quarter of 2024 represented the fifth consecutive quarter of shipment decline, a stark contrast to the growth experienced by other major smartwatch manufacturers.
Several factors contribute to this downturn. Counterpoint analyst Balbir Singh points to the lack of significant upgrades in the Apple Watch Series 10, released in the fall of 2024, as a key reason. The absence of a new Watch Ultra or Watch SE model at the 2024 launch event likely further impacted sales. The premium Apple Watch Ultra last saw an update in 2023, while the more budget-friendly SE hasn’t been refreshed since 2022.
Another contributing factor is the higher price point of Apple Watches compared to competitors, some of which offer comparable features at a lower cost. This price sensitivity may be influencing consumer purchasing decisions.
Reasons for Declining Apple Watch Sales
The decline in Apple Watch sales can be attributed to a confluence of factors:
- Lack of Innovation: The Series 10 offered incremental improvements rather than groundbreaking new features, failing to excite consumers.
- Absence of New Models: The lack of a new Watch Ultra or SE model limited consumer choice and upgrade opportunities.
- Pricing Strategy: The premium pricing of Apple Watches, especially compared to competitors offering similar functionality, may deter price-conscious buyers.
Potential for a Comeback in 2025
To regain market share in 2025, Singh suggests Apple needs to focus on introducing compelling new features, launching updated Watch SE and Watch Ultra models, and potentially refreshing the design.
Rumors suggest the Apple Watch Ultra 3 and Apple Watch SE 3 could launch alongside the Series 11 in September 2025. These releases could potentially revitalize Apple Watch sales.
Apple Watch Sales Data and Analysis
Apple doesn’t disclose specific Apple Watch sales figures, instead categorizing them under “Wearables, Home and Accessories” in financial reports. Consequently, third-party estimates, like those from Counterpoint Research, are the primary source of information on Apple Watch unit sales. These estimates utilize a combination of consumer surveys, market analysis, and channel data to provide insights into the market.
Conclusion: The Future of Apple Watch
The declining sales of the Apple Watch present a challenge for Apple. However, the anticipated release of new models and the potential for innovative features in 2025 could mark a turning point. The success of these new offerings will likely depend on their ability to address the current market dynamics and consumer expectations.
