Apple maintained its lead as the world’s top smartwatch brand in the year 2024, but did so at the cost of declining market share, while rivals such as Samsung and Chinese labels saw an uptick in their sales. Apple ended the year with a 22% share of the global market, down from 25% in 2023, amounting to a 19% reduction in yearly shipments.
According to Counterpoint’s Global Smartwatch Shipments report, the global smartwatch market shrunk for the first time ever in 2024. “The downturn was primarily due to a decline in Apple’s shipments as the basic smartwatch segment saw lower upgrades amid a slowdown,” says the report.
Apple’s lead in the market is primarily attributed to its massive iPhone user base, but the momentum was weaker due to a lukewarm upgrade situation. This won’t be the first time that Apple was beaten at raw growth figures by a familiar rival in 2024, as the year-end IDC smartwatch report also painted a similar picture.
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Why the Apple juggernaut is losing steam?
As per Counterpoint’s Senior Research Analyst, Anshika Jain, the absence of an upgraded Apple Watch Ultra 3 and timely refresh of the Apple SE model, coupled with an unimpressive innovation stack on the Apple Watch Series 10, contributed to a lower buyer uptake in North America.
“Additionally, patent disputes limited shipments in the first half of the year. The slowdown of the existing Apple Watch SE lineup and the lack of new SE models also contributed to the decline,” Jain was quoted as saying.
To recall, Apple is yet to release an updated low-cost “SE” model, which is rumoured to get a plastic chassis for its next iteration in order to maintain a competitive asking price. In the meanwhile, rivals such as Samsung and OnePlus have been offering fairly robust Wear OS smartwatches in the budget segment.
Moreover, Apple’s patent tussles with Masimo, which resulted in a restriction on sale of its latest smartwatch models with the disputed pulse oximetry (blood oxygen saturation level measurement) system onboard, also came as a big setback. Back then, the ban covered two of Apple’s flagship models, the Apple Watch Series 9 and the Watch Ultra 2.
Chinese brands are a real threat
While the global smartwatch market shrunk, China clocked the highest share of shipments on a per-market basis for the first time. Among the local players, Xiaomi witnessed the biggest growth worth an astonishing 135%, while Huawei recorded a 35% surge in annual shipments.
These two brands offer an expansive portfolio of smartwatch models, which not only cater to varied price brackets, but also entirely different buyer segments based on looks and feature set. Huawei’s rise, in particular, should worry Apple.
Huawei’s smartwatches have not only caught up with Apple in terms of sensor tech innovation, but also made a leap. For example, no Apple Watch model currently allows blood pressure monitoring. Huawei’s Watch D2, however, comes with a unique micropump system integrated within the watch strap that allows users to keep an eye on blood pressure levels.
Apple is said to be eyeing the next major sensor breakthrough for smartwatches, one that could allow non-invasive blood glucose monitoring, and possibly pressure sensing, as well. However, that is yet to materialize.
Upstarts like Novosound, however, have already demonstrated an integrated multi-functional wearable ultrasound sensor that is capable of monitoring blood pressure levels in real time without cuffs or wires. The company says its sensor stack is ready for deployment in watches and even smart rings.
It would be interesting to see how Apple manages to deliver on the promise of yet another smartwatch breakthrough, after pioneering the segment and leading it for years.
