The smartwatch industry saw a remarkable shift in 2024, marking its first decline in shipments globally, which dropped by 7% from the previous year. This decline was led primarily by decreased activity in some major markets, like India, where consumer interest fell due to a slower replacement cycle, a perceived lack of innovation, and less-than-satisfactory experiences reported by first-time users.
Despite this overall downturn, Apple managed to hold onto its leading position in the market. However, the company faced a significant drop in shipments, which decreased by 19%. This reduction indicates challenges even for established brands, emphasizing the need for continued innovation and engagement with consumers.
In second place, Huawei experienced a remarkable resurgence, showcasing a 35% increase in shipments. The growth was largely driven by strong performance in the Chinese market, which emerged as the largest smartwatch market globally for the first time. Huawei’s diverse product lineup, which includes basic wearables, children’s smartwatches, and advanced models, appeals to a broad spectrum of consumers. Meanwhile, the Chinese market itself grew by 6% year-on-year, reaching its highest shipment levels ever, with companies like Imoo (formerly known as BKK) and Xiaomi also playing significant roles in this growth.
Samsung secured the third spot in the global rankings, with a modest 3% increase in shipments. Its Galaxy Watch7 and Galaxy Watch Ultra series contributed positively to its overall performance, indicating that premium offerings might still be appealing to certain segments of the market.
Xiaomi made headlines with an impressive 135% year-on-year increase in its smartwatch shipments. This substantial growth can be attributed to the brand’s focus on delivering value for money, as well as its strategy to tap into both the budget and mid-range segments, effectively attracting a wide customer base.
The decline in the global smartwatch market can primarily be traced back to consumer sentiment in India. Many first-time buyers reported dissatisfaction with their experiences, which may have been fueled by high expectations for features and functionality. Additionally, the longer intervals between purchases indicated consumers were holding onto their devices longer, further dampening demand.
Conversely, the Chinese market’s expansion suggests that it may offer significant opportunities for smartwatches moving forward. With both established and emerging brands competing vigorously, this regional growth could set the stage for a more diversified global market landscape in the next few years.
Looking ahead, there’s cautious optimism for recovery in the smartwatch market by 2025. This anticipated rebound is expected to coincide with greater integration of artificial intelligence and improved health monitoring features in future smartwatch models. These advancements are likely to rekindle interest among consumers as brands strive to innovate and enhance user experiences.
As companies navigate market fluctuations, those that can effectively respond to consumer feedback and adapt their offerings to meet evolving needs will be well-positioned to thrive in the coming years. With ongoing technological advancements, the future of smartwatches could hold remarkable potential, promising new functionalities that capture consumer attention and drive interest in this growing sector.