It’s not looking great for the smartwatch industry as analysts from Counterpoint have recorded a fifth consecutive quarter of decline with 2% year-on-year slip. However, China is experiencing a surge in smartwatch shipments, with a whopping 37% year-on-year growth.
Experts point out two major reasons for the global smartwatch market decline. The first is the waning of Apple smartwatch sales, accompanied by a significant and persistent deceleration in India’s once-booming smartwatch market.
Still, Apple retains the top spot with 20% global share, while recording 9% decline in shipments. Apple is followed by Huawei, which grew 53%, and so did Xiaomi, from 6% last year to 10%, recording the same 53% growth as Huawei. Samsung lost nearly 23% of its market share year-over-year, dropping from 9% to 7% of the global share.
Consumer preferences are seeing notable changes as people are looking for more expensive and feature-rich devices. The $100-$200 segment experienced a 21% growth, while the sub-$100 category saw a 17% decline in shipments.
Looking ahead, Counterpoint believes that the smartwatch market will see a modest uptick in sales by the end of 2025, with around 3% growth.