New research stats from Counterpoint shed light on a global decline in smartwatches for the first time.
Figures showed a sharp fall in shipments for 2024 when compared to the previous year. As per the research firm, a lot of this had to do with a fall in popularity of Apple. To be more exact, 7% fewer devices were shipped in 2024 while those for Apple shipments fell 19% during that time.
The massive slump has to do with a deficiency in new features found across Apple’s latest offerings. This might also be linked to the hype created around a new and premium Ultra 3 model that never came into existence.
The biggest driver for this decline happened to be in North America, where there was a lack of the Ultra 3 and minimal feature upgrades in the lineup for S10 that had some users holding back a purchase.
Let’s not forget how iPhone maker Apple had to face bans in sales and imports that took center stage in the US during the latter part of 2023 and start of 2024. This had to do with a disagreement linked to monitoring of blood oxygen levels. That also impacted sales figures during the start of last year.
As per expert analysts, the market has seen the smartwatch go from being the best and most innovative product to something more stabilizing in the industry. The feature set is not changing very dramatically YoY.
Adding continuous blood sugar and blood pressure monitoring could revolutionize the smartwatch industry. These health-focused features would address a growing demand for real-time wellness tracking, particularly among users managing chronic conditions. If major brands like Apple, Samsung, and Xiaomi integrate such innovations effectively, they could reinvigorate consumer interest and drive sales. The success of wearables increasingly depends on practical, life-enhancing technologies rather than minor aesthetic upgrades. Expanding health functionalities may be the key to reversing the recent decline in smartwatch shipments.
Despite the general decline, we did see a huge rise in sales for smartwatches from brands in China like Huawei, Imoo, and Xiaomi. China sales grew from 19% to 25% so this was the first time we saw it record more shipments than other leading global markets like India or North America.
Manufacturers from China also tapped on another leading trend, which is kids’ smartwatches that grew massively in 2024. Imoo is a leader in designing smart watches for minors and that saw a 22% rise in global shipments.
The concept is new and innovative, and parents like the idea that they get more gadgets linked to kids’ safety and tracking. This way, they stay linked to them at all times.
That success didn’t last too long as competition from Chinese rival Xiaomi took center stage with its new Smart Bands that track user activity at a fraction of the cost of other products made by Apple and Samsung.
Xiaomi did great in terms of sales thanks to its minimal price point strategy and great quality. That affordability factor really does wonders and resonates more with clients in today’s inflation.
The products are not only popular in Asia but also in Europe, where the low price points were met with great applause. Sadly, the opposite was true for India, which was a part of the major sales drop for global smartphones, falling 30% to 23%.
Research experts do hope for a small phase of recovery this year in the global markets but expectations stand at single digit percentage growth only.
Read next: AI Costs Drop as OpenAI Faces GPU Constraints, While Synthetic Data Eases Training Concerns
Figures showed a sharp fall in shipments for 2024 when compared to the previous year. As per the research firm, a lot of this had to do with a fall in popularity of Apple. To be more exact, 7% fewer devices were shipped in 2024 while those for Apple shipments fell 19% during that time.
The massive slump has to do with a deficiency in new features found across Apple’s latest offerings. This might also be linked to the hype created around a new and premium Ultra 3 model that never came into existence.
The biggest driver for this decline happened to be in North America, where there was a lack of the Ultra 3 and minimal feature upgrades in the lineup for S10 that had some users holding back a purchase.
Let’s not forget how iPhone maker Apple had to face bans in sales and imports that took center stage in the US during the latter part of 2023 and start of 2024. This had to do with a disagreement linked to monitoring of blood oxygen levels. That also impacted sales figures during the start of last year.
As per expert analysts, the market has seen the smartwatch go from being the best and most innovative product to something more stabilizing in the industry. The feature set is not changing very dramatically YoY.
Adding continuous blood sugar and blood pressure monitoring could revolutionize the smartwatch industry. These health-focused features would address a growing demand for real-time wellness tracking, particularly among users managing chronic conditions. If major brands like Apple, Samsung, and Xiaomi integrate such innovations effectively, they could reinvigorate consumer interest and drive sales. The success of wearables increasingly depends on practical, life-enhancing technologies rather than minor aesthetic upgrades. Expanding health functionalities may be the key to reversing the recent decline in smartwatch shipments.
Despite the general decline, we did see a huge rise in sales for smartwatches from brands in China like Huawei, Imoo, and Xiaomi. China sales grew from 19% to 25% so this was the first time we saw it record more shipments than other leading global markets like India or North America.
Manufacturers from China also tapped on another leading trend, which is kids’ smartwatches that grew massively in 2024. Imoo is a leader in designing smart watches for minors and that saw a 22% rise in global shipments.
The concept is new and innovative, and parents like the idea that they get more gadgets linked to kids’ safety and tracking. This way, they stay linked to them at all times.
That success didn’t last too long as competition from Chinese rival Xiaomi took center stage with its new Smart Bands that track user activity at a fraction of the cost of other products made by Apple and Samsung.
Xiaomi did great in terms of sales thanks to its minimal price point strategy and great quality. That affordability factor really does wonders and resonates more with clients in today’s inflation.
The products are not only popular in Asia but also in Europe, where the low price points were met with great applause. Sadly, the opposite was true for India, which was a part of the major sales drop for global smartphones, falling 30% to 23%.
Research experts do hope for a small phase of recovery this year in the global markets but expectations stand at single digit percentage growth only.
Read next: AI Costs Drop as OpenAI Faces GPU Constraints, While Synthetic Data Eases Training Concerns
