Key Insights from Market Data
Global smartwatch sales declined by 7% in 2024, marking the first-ever drop in the industry. A major factor behind this downturn is the sharp fall in Apple Watch sales, down by 19%.
Why Did Smartwatch Sales Decline?
- Apple’s Minimal Upgrades: The latest Apple Watch models lacked major new features. The expected Ultra 3 model never launched, reducing consumer interest.
- North America’s Market Slump: Sales in North America fell due to weak demand for Apple’s S10 series, which had only minor improvements.
- US Import Ban on Apple Watches: Apple faced sales and import restrictions over a patent dispute related to blood oxygen monitoring. This further impacted its market performance.
- India’s Market Slowdown: India’s smartwatch market share fell from 30% to 23%, contributing to the overall global decline.
China’s Smartwatch Market Expands
- China Overtakes North America & India: Chinese brands now hold 25% of the global market, up from 19% in late 2023.
- Growth in Kids’ Smartwatches: Parent concerns about child safety boosted demand for children’s smartwatches, a segment led by Imoo, Huawei, and Xiaomi.
- Xiaomi’s Rapid Growth: Xiaomi’s smartwatch shipments surged 135%, driven by budget-friendly smart bands.
What’s Next for the Smartwatch Industry?
- 2025 Sales Recovery Expected: Analysts predict modest growth as AI features and advanced health tracking attract more buyers.
This shift highlights changing consumer preferences and rising competition from affordable smartwatch brands.
