Global Smartwatch Shipments Experience Decline in Q4 2024
Recent findings from analytics company Counterpoint Research indicate a notable shift in the global smartwatch market, revealing a 7% decline in shipments for the first time in Q4 2024. While Apple continues to hold the top position in market share, the tech giant faces a significant year-over-year shipment reduction of 19%.
Factors Behind Apple’s Struggles
The report highlights that Apple’s decreasing sales can be attributed to heightened competition and lackluster upgrade cycles. This decline is particularly surprising given that it coincides with the 10th anniversary of the Apple Watch, which was marked by the release of the Series 10.
Key reasons for this downturn include the absence of the anticipated Apple Watch Ultra 3 and limited upgrades in the Apple Watch Series 10, prompting North American consumers to delay their purchases. This region saw the most significant impact on sales.
Additionally, the lack of a refresh for the Apple Watch SE has further contributed to the decline, raising concerns about the future of this particular line, especially as the iPhone 16e enters the market.
Impact of Patent Disputes
Counterpoint’s analysis reveals that Apple shipped approximately 800, 000 fewer smartwatches compared to the previous year. Compounding these issues, the company faced legal challenges, including a patent dispute with Masimo, which led to the prohibition of the Apple Watch’s blood oxygen monitoring feature in the United States. Fortunately for Apple, they recently circumvented an import ban associated with another patent issue involving AliveCor.
Emerging Trends in the Kids’ Smartwatch Segment
Interestingly, the report indicates growth within the kids’ smartwatch sector, with Imoo emerging as a market leader thanks to its feature-packed yet affordable options. Many parents are increasingly concerned about monitoring their children’s whereabouts, driving the demand for connectivity features in smartwatches.
Samsung’s Performance and Regional Insights
In contrast, Samsung recorded a 3% rise in global shipment share, bolstered by positive reception of its Galaxy Watch7, Galaxy Watch Ultra, and Galaxy Watch FE. The South Korean company has also partnered with Google to create a kid-friendly experience on the Galaxy Watch7, reflecting a strategic move toward family-oriented technology.
Regionally, China has emerged as the largest market for smartwatch shipments, surpassing North America and India for the first time. Huawei, Xiaomi, and BBK (Imoo) have been instrumental in this surge in the Chinese market.
Future Outlook for the Smartwatch Market
Looking ahead, the global smartwatch market is expected to see gradual recovery, with projections for single-digit growth in 2025. Both Android and iOS smartwatch manufacturers are anticipated to integrate more artificial intelligence capabilities and advanced sensors, enhancing their ability to provide comprehensive health insights. Future innovations may focus on critical health metrics, including monitoring serious conditions like atrial fibrillation, sleep apnea, hypertension, and diabetes.
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