Apple Watch shipments saw a sharp downturn in 2024, with a 19% year-over-year global decline, according to new data from Counterpoint Research. This marks the second consecutive year of falling sales for Apple’s wearables, culminating in a fifth straight quarter of shipment declines by the end of the year.
Although most regions saw a contraction in Apple Watch sales, India stood out as a rare bright spot, managing to buck the global trend. Still, performance in North America—a region that typically accounts for more than half of Apple Watch shipments—played a major role in driving the overall decline. The steep drop in this key market highlights the mounting challenges Apple faces in maintaining momentum for its flagship wearable.
Several key factors contributed to the slowdown. Chief among them was the absence of a new Apple Watch SE model in 2024. The SE line, which has historically driven volume sales with its lower price point, last received an update in late 2022. Without a refreshed model, Apple missed an opportunity to attract value-focused consumers, particularly in emerging markets and among first-time buyers.
The Apple Watch Series 10, also released in 2024, failed to deliver compelling upgrades over its predecessor, likely dampening enthusiasm among upgraders. On top of that, legal challenges in the U.S. forced Apple to remove the blood oxygen sensor from some units, which impacted the appeal of the new Series 10. Notably, Counterpoint observed that the third quarter of 2024 marked the first time Apple experienced a year-over-year shipment decline during a launch quarter for its mainline watch series.
Even the high-end segment was affected. The anticipated Apple Watch Ultra 3 did not launch in 2024, leading to a noticeable drop in shipments for the Ultra line. Its market share fell from over 10% to under 8% by the fourth quarter, contributing further to Apple’s losses in the premium smartwatch category. The company’s dominant position in the advanced segment eroded significantly, with an 8-point market share decline year-over-year.
In contrast, competitors capitalized on Apple’s slower cycle. Huawei grew its market share to 13% with a 35% year-over-year increase, while Xiaomi surged by an impressive 135%, entering the global top five. Samsung posted a modest 3% growth, driven by its latest Galaxy Watch models. China also overtook North America and India to become the world’s largest smartwatch market, fueled largely by the success of local brands.
Looking ahead, Apple is expected to respond with significant updates in 2025. Rumors point to the launch of the Apple Watch Series 11 with new health sensors and potential camera features, a redesigned Apple Watch SE with a plastic chassis aimed at reducing costs, and the long-awaited Apple Watch Ultra 3, possibly featuring satellite connectivity.
According to Counterpoint, these upcoming models will be critical to reversing Apple’s current trajectory. The firm projects a gradual recovery in the global smartwatch market next year, with single-digit growth, and emphasizes that fresh hardware and meaningful innovations will be key for Apple to regain its footing.
(via Counterpoint Research)
