The global smartwatch market continues to face challenges, with analysts from Counterpoint reporting a fifth consecutive quarter of decline in Q1 2025.
The decline is measured at 2% year-on-year, suggesting a persistent struggle in the sector. While the outlook seems grim on a global scale, there is a notable exception: China. The country is witnessing a strong 37% year-on-year growth in smartwatch shipments, which highlights regional differences within the broader trend.
Experts attribute the global downturn to two primary factors
. First, the decline in Apple Watch sales has contributed significantly to the overall market dip. Despite still holding the top position with a 20% global market share, Apple’s smartwatch shipments have dropped by 9%. Second, India’s once-booming smartwatch market is also experiencing a slowdown, further impacting the global numbers.
Despite these challenges, several brands are showing strong growth. Huawei and Xiaomi both recorded impressive 53% year-on-year growth, with Xiaomi’s market share rising from 6% to 10%. Samsung, however, faced a significant setback, losing nearly 23% of its market share, falling from 9% to 7% globally.
Consumer preferences have shifted as well, with an increasing demand for higher-end, feature-rich smartwatches. The $100-$200 price segment has experienced a 21% growth, while the sub-$100 category saw a 17% decline in shipments. These changes indicate that consumers are willing to invest more in smartwatches that offer more advanced functionalities.
Looking ahead, analysts at Counterpoint predict a slight recovery in the smartwatch market by the end of 2025, with an anticipated 3% growth in sales. While the market may continue to face challenges, these trends signal that there is still room for innovation and growth in the sector, especially in regions like China where demand is rising.