Apple retained its position as the leading smartwatch brand globally in 2024, but its market share dipped as competitors like Samsung and Chinese brands experienced growth. Apple concluded the year with a 22% market share, a decrease from 25% in 2023, representing a 19% drop in annual shipments.
According to Counterpoint’s Global Smartwatch Shipments report, the global smartwatch market contracted for the first time in 2024. The report attributes this decline primarily to reduced Apple shipments, as the basic smartwatch segment saw fewer upgrades due to an overall market slowdown.
Apple’s market dominance is largely thanks to its extensive iPhone user base, but the momentum weakened due to less compelling upgrade incentives. This wasn’t an isolated incident for Apple in 2024, as the year-end IDC smartwatch report also highlighted a similar trend.
Reasons for Apple’s Slowing Momentum
The Apple Watch Series 10 laying on a yellow chair.
Counterpoint’s Senior Research Analyst, Anshika Jain, attributed the lower consumer adoption in North America to several factors, including the absence of an upgraded Apple Watch Ultra 3 and a timely refresh of the Apple SE model, combined with a lack of significant innovation in the Apple Watch Series 10.
Furthermore, patent disputes also impacted shipments in the first half of the year. The slowdown of the existing Apple Watch SE lineup and the absence of new SE models further contributed to the decline.
Apple has yet to release an updated budget-friendly “SE” model, rumored to feature a plastic chassis in its next iteration to maintain a competitive price point. Meanwhile, competitors like Samsung and OnePlus have been offering robust Wear OS smartwatches in the affordable segment.
Apple’s patent battles with Masimo, resulting in restrictions on the sale of its latest smartwatch models featuring the disputed pulse oximetry (blood oxygen saturation level measurement) system, also dealt a significant blow. The ban affected two flagship models: the Apple Watch Series 9 and the Watch Ultra 2.
The Growing Threat from Chinese Brands
Person wearing Huawei Watch D2.
While the global smartwatch market declined, China recorded the highest shipment share for the first time. Among domestic players, Xiaomi experienced remarkable growth of 135%, while Huawei saw a 35% increase in annual shipments.
These brands offer a diverse range of smartwatch models catering to various price points and appealing to different consumer segments based on design and features. Huawei’s growth, in particular, presents a significant challenge to Apple.
Huawei’s smartwatches have not only matched Apple’s sensor technology innovation but also surpassed it in some areas. Notably, no current Apple Watch model offers blood pressure monitoring, a feature available in Huawei’s Watch D2, which utilizes a unique micropump system integrated into the watch strap.
Apple is reportedly pursuing the next major smartwatch sensor breakthrough: non-invasive blood glucose monitoring, and potentially pressure sensing. However, this technology remains unrealized.
Emerging companies like Novosound have already showcased an integrated multi-functional wearable ultrasound sensor capable of real-time blood pressure monitoring without cuffs or wires. The company claims its sensor technology is ready for integration into smartwatches and even smart rings.
It will be intriguing to observe how Apple plans to deliver on the promise of another smartwatch breakthrough, having pioneered and led the segment for years.
