Global Smartwatch Shipments Dip 2 Percent YoY in Q1 2025, While China Sees Growth: Counterpoint

Global smartwatch shipments declined by two percent on a year-on-year (YoY) basis in the first quarter (Q1) of 2025, according to a recent report by a market research firm. This dip is said to have been caused by market deceleration in India and a decline in Apple shipments. Amid a global decline, China saw an upward trend, reportedly driven by rising shipments of kids' smartwatches from Chinese brands like Huawei, Imoo, and Xiaomi. The report added that the market is expected to recover in 2025, driven by the launch of new models and more people using advanced smartwatches.

Global Smartwatch Shipments Down Two Percent YoY in Q1 2025

According to a report by Counterpoint Research, the global smartwatch shipments declined by 2 percent YoY in Q1 2025, making it the fifth consecutive quarter of YoY decline. The decline was due to the slowdown in India's once-booming smartwatch market and a drop in Apple's smartwatch shipments, the report added.

China, however, saw a 37 percent YoY growth in smartwatch shipments. The growth was led by high local demand, cost-effective product strategies, and good performance from brands like Huawei, Imoo, and Xiaomi, according to the report. The increase in shipments also pushed China's share in the global smartwatch market to its highest level since Q4 2020. 

The report further claimed that despite Apple recording a YoY decline for the sixth consecutive quarter, it retained its top position in the global smartwatch market share, backed by a growing base of iOS users. Huawei and Xiaomi followed the Cupertino-based tech giant in market share. The Chinese brands are said to have maintained competitive pricing aimed at the mid-to-premium segments, a diverse product portfolio and a strong domestic shipment performance.

Samsung, on the other hand, saw an 18 percent YoY decline in smartwatch shipments. This was due to the weak performance of its previous-generation models across major markets, the report claimed.

According to the report, the kids' smartwatch segment saw significant global growth, with Imoo maintaining its lead, driven by affordable, feature-rich products. China remained the largest contributor to global kids' smartwatch shipments, followed by growth in North America, Asia Pacific, and Europe. This rise reflects a growing trend of delaying early smartphone use for children, along with growing concerns of parents over their child's location tracking.

The global smartwatch market is undergoing a notable shift in consumer preferences, the report added, where consumers are moving up the price ladder, seeking better features and long-term value. Therefore, in Q1 2025, the $100–$200 (roughly Rs. 8,600 to roughly Rs. 17,200) price segment recorded a 21 percent growth in smartwatch shipments, driven by demand for improved health and fitness features. Also in line with the shift, the entry-level smartwatch segment (below $100 (roughly Rs. 8,600)) witnessed a 17 percent decline in shipments.

Global Smartwatch Shipments Outlook

The report concluded with an outlook that the global smartwatch market is expected to recover modestly in 2025, with projected growth of around three percent. This growth is anticipated to be driven by companies integrating upgraded health sensors and AI features into their products. Additionally, the market may benefit from some smartwatches receiving medical-grade certifications, expanding their use cases beyond lifestyle and fitness.

The expected growth in the global smartwatch market may also be marked by a behavioural shift in consumer preferences, where they prioritise functionality, long-term value and cosystem integration, according to the report. The shift will likely steer the market toward more premium models.