Global Smartwatch Sales Decline for the First Time in 2024, Xiaomi Reports Strong Growth: Counterpoint

Global smartwatch shipments declined 7 percent year-on-year (YoY) in 2024, according to a new report by market research firm Counterpoint. Apple continued to hold the top position in worldwide smartwatch shipments, followed by Huawei and Samsung in second and third places, respectively. The South Korean brand registered 3 percent YoY growth in shipments, thanks to the latest Galaxy Watch lineups. Chinese tech brand Xiaomi marked the fastest growth in 2024 and secured a spot among the top five for the first time. Imoo also witnessed a commendable rise in sales.

As per Counterpoint Research's latest Global Smartwatch Shipments Tracker Q4 2024 report, global sales of smartwatches have fallen for the first time. The worldwide smartwatch shipments fell 7 percent YoY in 2024 due to a decline in Apple's shipments. Following past trends, the Cupertino-based brand retained its top position despite a 19 percent YoY decline in shipments. The slowdown of the Apple Watch SE lineup and the lack of new SE models is said to have affected the sale.

Despite the overall decline, Chinese brands like Xiaomi, Huawei, and Imoo saw a massive rise in sales. Huawei came in second with 35 YoY growth, while Samsung grabbed the third position with a 3 percent YoY growth, driven by the strong adoption of its Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series.

Counterpoint says Xiaomi experienced the fastest growth last year with 135 percent YoY growth and grabbed a spot among the top five for the first time. The growth of Xiaomi was driven by the strong performance of its Watch S1 and Redmi Watch series. Imoo witnessed 22 percent YoY growth.

The report notes that the basic smartwatch segment saw lower upgrades amid a slowdown. Weakness in the basic smartwatch market originated in India. The consumer demand dropped in the country due to a slow replacement cycle, lack of innovation, and unsatisfactory user experiences among first-time buyers. The global smartwatch shipment market share in India fell from 30 percent in 2023 to 23 percent in 2024.

China, on the other hand, recorded the highest ever shipments for the first time and surpassed India and the North American regions. Huawei, Imoo and Xiaomi were the front runners of the China market. The report also notes growing popularity of smartwatches for children.

Market Expected to Slowly Recover in 2025

Counterpoint analysts see signs of improvement in wearable demand in 2025. “The smartwatch market is expected to recover slowly and witness single-digit percentage growth in 2025. Both Android and iOS smartwatches are expected to integrate more AI capabilities and advanced sensors to provide deeper insights into health data, said David Naranjo, Associate Director, Counterpoint Research.

"For advanced sensors, smartwatches are expected to incorporate sensors for measuring bodily signals such as serious heart health tracking, focusing on atrial fibrillation, sleep apnea, hypertension, and diabetes. Brands will emphasise on getting regulatory approvals for their new smartwatch models and incorporating new health features to sustain their position in the market, he added.