Global Smartwatch Sales Fall For First Time

Global smartwatch sales fell for the first time in 2024, declining 7 percent over the previous year, as Apple made the biggest contribution to the slowdown with a 19 percent year-over-year decrease in sales, according to new figures from Counterpoint Research.

The Apple Watch marked 10 years since its launch with the Series 10 range, but lost momentum due to the lack of a rumoured Ultra 3 model and minimal feature upgrades to new models, said Counterpoint senior analyst Anshika Jain.

A patent dispute regarding blood oxygen level monitoring also contributed to slower Apple Watch sales, as it resulted in sales and import bans in late 2023 and early 2024, contributing to lower sales in the first half of 2024, Jain said.

Apple slowdown

“The biggest driver of the decline was North America, where the absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases,” Jain said.

Apple retained 22 percent of the worldwide market in the final quarter of last year, down from 25 percent a year earlier.

The Indian market was another major contributor to the global sales decline, falling from 30 percent of the market to 23 percent.

Analysts said an initial boom in sales of ultra-cheap smartwatches in India was followed by a collapse amidst complaints over the quality of the devices.

South Korea’s Samsung grew 3 percent on strong demand for its Galaxy Watch 7, Ultra and FE Series.

Meanwhile, China grew from 19 percent of the world market to 25 percent, the first time it showed more smartwatch sales than India or North America, Counterpoint said.

One contributor was the rise in popularity of smartwatches for children, with Imoo, known in China as “Little Genius”, seeing a 22 percent rise in its child-targeted devices.

Children’s smartwatches

“The kids’ smartwatch segment is gaining traction as parents are concerned for their children’s safety, and they desire to track and stay constantly connected with their children,” said Counterpoint’s Balbir Singh.

The child smartwatch segment was the only one to grow last year.

Huawei saw smartwatch sales grow 35 percent, while Xiaomi jumped 135 percent as it marketed low-cost Smart Band activity trackers to regions such as southern and eastern Europe.

Counterpoint said it expects a modest recovery of single-digit percentage growth this year, driven by Android and Apple devices with AI-powered features for conditions such as sleep apnoea, hypertension and diabetes.