Worldwide Smartwatch Sales Decline for the First Time
Sales of smartwatches in China have risen significantly, comprising 25% of the global market, an increase from 19% just a year prior. This notable shift marks a significant milestone as it positions China as the leading market for smartwatch sales, surpassing both India and North America for the first time, as reported by Counterpoint Research.
According to industry analyst Ms. Jain, major Chinese manufacturers such as Huawei, Imoo, and Xiaomi have emerged as significant players in this thriving sector. These companies have successfully tapped into various market trends, particularly the increasing interest in smartwatches designed for children, a segment that has shown exclusive growth potential in 2024.
Imoo, also known as “Little Genius” in China, focuses specifically on smartwatches tailored for children. The company experienced a remarkable 22% increase in shipments, underscoring a growing market driven by parents’ concerns over their children’s safety and their desire to maintain constant communication with them. As noted by Balbir Singh from Counterpoint, these children’s smartwatches are becoming increasingly popular as they help parents track their kids’ locations and activities more effectively.
Despite Imoo’s significant growth, it was Xiaomi that outpaced all competitors, boasting a staggering 135% increase in shipments. Xiaomi’s Smart Band activity trackers are particularly appealing as they are offered at a much lower price point compared to offerings from more established brands like Apple and Samsung. This strategy has allowed Xiaomi to capture a broader section of the market, catering to consumers seeking affordable yet functional wearable technology.
On the flip side, the global smartwatch market saw a decline in sales, particularly influenced by a drop in demand in India. Sales in India decreased from 30% of the global market share to 23%. However, while this downturn was notable, Counterpoint anticipates a small recovery, projecting single-digit percentage growth in 2025. The expected rebound is attributed to the increased integration of artificial intelligence (AI) features in smartwatches and a growing focus on providing comprehensive health metrics.
This evolution in the smartwatch market reflects broader consumer trends, where functionality, affordability, and health awareness play pivotal roles. The rise of AI-driven features is expected to enhance user experiences in the coming years, attracting more customers who look for both cutting-edge technology and practical applications in their devices. As smartwatch manufacturers adapt to these changing demands, the landscape of wearable technology continues to evolve, offering consumers an array of options tailored to their specific needs.
Overall, advancements in smartwatch technology combined with shifts in market focus towards children’s wearables and health features will likely shape the industry in the years ahead, leading to diverse opportunities for both consumers and manufacturers.
