Global smartwatch shipments fell 7% in 2024, marking the first-ever annual decline, according to Counterpoint Research. Apple (NASDAQ:AAPL), a dominant player in the wearables space, saw its shipments drop 19% year-over-year, making it the biggest contributor to the slowdown.
Apple Watch lost momentum on its 10th anniversary, despite launching the S10 series, said Counterpoint analyst Anshika Jain. Key factors behind the decline included the lack of an Ultra 3 model, minimal feature upgrades, and patent disputes limiting shipments in early 2024.
While Apple struggled, Samsung (SSNLF) grew smartwatch sales by 3%, thanks to strong demand for its Galaxy Watch 7, Ultra, and FE Series. Meanwhile, China became the top global market, with Huawei sales up 35%, Imoo up 22%, and Xiaomi soaring 135%.
Despite the 2024 slump, analysts expect a modest rebound in 2025, as both Android and iOS smartwatches integrate AI-powered health tracking for conditions like sleep apnea, hypertension, and diabetes.
This article first appeared on GuruFocus.
