World gross sales of smartwatches have fallen for the primary time, new figures point out, largely because of a pointy decline within the reputation of market chief, Apple.
Market analysis agency Counterpoint says 7% fewer of the gadgets have been shipped in 2024 in comparison with the 12 months earlier than.
Shipments of Apple Watches fell by 19% in that interval, Counterpoint says.
It blames the hunch on a scarcity of recent options in Apple’s newest gadgets, and the actual fact a rumoured high-end Extremely 3 mannequin by no means materialised.
“The most important driver of the decline was North America, the place the absence of the Extremely 3 and minimal characteristic upgrades within the S10 lineup led customers to carry again purchases,” mentioned Counterpoint senior analysis analyst Anshika Jain.
Apple was additionally hit with gross sales and import bans within the US in late 2023 and early 2024 over a disputed patent concerning blood oxygen degree monitoring – which Ms Jain says additionally contributed to decrease gross sales figures within the first half of 2024.
It retained 22% of market share within the last three months of 2024, down from 25% a 12 months earlier.
“We have been by means of a interval the place the smartwatch has gone from being a brand new and thrilling gadget, to one thing now that is stabilising – the characteristic set is not altering very dramatically 12 months over 12 months,” mentioned Leo Gebbie, principal analyst at CCS Perception.
Regardless of the general decline, final 12 months did see an enormous rise in gross sales for Chinese language-made smartwatches from manufacturers similar to Xiaomi, Huawei and Imoo.
Gross sales in China additionally grew from 19% of the market to 25% within the 12 months from the final quarter of 2023.
This was the primary time it recorded extra smartwatch gross sales than India or North America, in accordance with Counterpoint.
The Chinese language producers additionally appeared to faucet into one other development – the rising reputation of smartwatches for youngsters, the one phase of the market to develop in 2024.
Imoo, recognized in China as “Little Genius”, specialises in kids’s good watches and noticed a 22% rise in shipments.
“The youngsters’ good watch phase is gaining traction as mother and father are involved for his or her kids’s security, they usually need to trace and keep always linked with their kids,” Counterpoint’s Balbir Singh mentioned.
However Imoo was eclipsed by a 135% rise in shipments from Beijing-based tech firm Xiaomi.
Its Sensible Band exercise trackers promote for a fraction of the value of rivals made by Apple and Samsung.
“We’re seeing the big client electronics gamers like Apple and Samsung actually simply look to drive a approach larger margin and never have interaction within the worth battle,” mentioned Mr Gebbie.
“Xiaomi has finished a extremely good job of promoting gadgets, notably in areas like southern and jap Europe the place that better affordability tends to resonate much more strongly with prospects.”
One other giant contributor to the worldwide gross sales drop was India, which fell from 30% of the market to 23%.
He mentioned this was partly due to a “bubble” in ultra-cheap gadgets from Indian producers which has now burst.
“We learn and noticed quite a bit by way of complaints concerning the high quality of gadgets, with individuals being sad with them,” he mentioned.
“For these firms, there’s been a way that from this level onwards they might be higher served by perhaps making and promoting merchandise with a barely longer lifespan.”
Counterpoint says it expects a small restoration within the international market, with “single-digit proportion development in 2025”.
It predicts the uptick in gross sales shall be pushed by the rising adoption of AI options, and a better emphasis of offering a wider vary of well being knowledge.
