After a two-year slump, the smartphone market bounced back last year, seeing a 4% year-over-year growth in global sales. However, on the flip side, smartwatch sales took a dip across all regions.
Global smartwatch shipments took a hit in 2024, dropping 7% year-over-year, marking the first time the market has seen a decline. A big part of this drop is tied to Apple's shipments slowing down, with fewer people opting to upgrade their basic smartwatches in a market that's been slowing down overall.
Despite still holding the top spot, Apple experienced a 19% dip in sales compared to 2023. Meanwhile, Huawei and Samsung managed to grow. Samsung saw a 3% year-on-year increase, driven by strong demand for the Galaxy Watch 7, Galaxy Watch Ultra and Galaxy Watch FE series. And Huawei performed even better, enjoying a 35% boost.
For the first time, the smartwatch market is seeing a decline.
However, the real surprise came from Xiaomi, which experienced an incredible 135% growth in the same period. The report credits Xiaomi's success to the impressive performance of its more premium Watch S1 and budget-friendly Redmi Watch.
While these smartwatches may not be top-tier in terms of features, their significantly lower prices compared to those from Apple, Samsung and Google have clearly caught consumers' attention.
Plus, apparently, the lack of significant feature upgrades from Apple, Samsung and Google have contributed to the slump in sales, particularly in North America, where shipments saw a sharp drop compared to 2023. Meanwhile, things couldn't have been more different in China, where smartwatch shipments saw a major boost.
In terms of regions, China, for the first time, recorded the highest ever shipments, surpassing NAM and India in 2024. Huawei, Imoo and Xiaomi were the front runners of the China market. Their diverse portfolios, ranging from basic, advanced to kids' smartwatches, along with the Chinese consumer's inclination towards these brands drove the overall adoption.
– Anshika Jain, Senior Research Analyst at Counterpoint, March 2025
Analysts believe that smartwatch sales will bounce back in 2025. Why? Well, because manufacturers are gearing up to add more innovative health and fitness features to their upcoming models.
Apple, on the other hand, might introduce high-blood pressure detection with the upcoming Apple Watch 11 and Apple Watch Ultra 3. And I also think that these health-focused upgrades could be the key to encouraging people to either upgrade their current devices or try a smartwatch for the first time.
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Tsveta, a passionate technology enthusiast and accomplished playwright, combines her love for mobile technologies and writing to explore and reveal the transformative power of tech. From being an early follower of PhoneArena to relying exclusively on her smartphone for photography, she embraces the immense capabilities of compact devices in our daily lives. With a Journalism degree and an explorative spirit, Tsveta not only provides expert insights into the world of gadgets and smartphones but also shares a unique perspective shaped by her diverse interests in travel, culture, and visual storytelling.
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