MAR 12 – Global gross sales of smartwatches have fallen for the primary time, new figures point out, largely on account 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 droop on an absence of latest options in Apple’s newest gadgets, and the very fact a rumoured high-end Ultra 3 mannequin by no means materialised.
“The biggest driver of the decline was North America, where the absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases,” stated 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 remaining three months of 2024, down from 25% a 12 months earlier.
“We’ve been through a period where the smartwatch has gone from being a new and exciting gadget, to something now that’s stabilising – the feature set isn’t changing very dramatically year over year,” stated Leo Gebbie, principal analyst at CCS Insight.
Despite the general decline, final 12 months did see an enormous rise in gross sales for Chinese-made smartwatches from manufacturers corresponding to Xiaomi, Huawei and Imoo.
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 producers additionally appeared to faucet into one other development – the rising reputation of smartwatches for kids, the one phase of the market to develop in 2024.
Imoo, identified in China as “Little Genius”, specialises in youngsters’s sensible watches and noticed a 22% rise in shipments.
“The kids’ smart watch segment is gaining traction as parents are concerned for their children’s safety, and they desire to track and stay constantly connected with their children,” Counterpoint’s Balbir Singh stated.
But Imoo was eclipsed by a 135% rise in shipments from Beijing-based tech firm Xiaomi.
Its Smart Band exercise trackers promote for a fraction of the worth of rivals made by Apple and Samsung.
“We’re seeing the large consumer electronics players like Apple and Samsung really just look to drive a way higher margin and not engage in the price war,” stated Mr Gebbie.
“Xiaomi has done a really good job of selling devices, particularly in regions like southern and eastern Europe where that greater affordability tends to resonate a lot more strongly with customers.”
Another giant contributor to the worldwide gross sales drop was India, which fell from 30% of the market to 23%.
He stated this was partly due to a “bubble” in ultra-cheap gadgets from Indian producers which has now burst.
“We read and saw a lot in terms of complaints about the quality of devices, with people being unhappy with them,” he stated.
“For those companies, there’s been a sense that from this point onwards they would be better served by maybe making and selling products with a slightly longer lifespan.”
Counterpoint says it expects a small restoration within the international market, with “single-digit percentage growth in 2025”.
It predicts the uptick in gross sales will likely be pushed by the rising adoption of AI options, and a higher emphasis of offering a wider vary of well being information.