Photo Credit: Counterpoint
The global smartwatch market continues to experience a downward trend, according to the latest report by Counterpoint Research. Shipments fell by 2% year-over-year in the first quarter of 2025. This marks the fifth consecutive quarterly decline, highlighting the ongoing slowdown in the wearables segment across many major markets.
Apple Still on Top, But Slipping
Apple maintained its position as the global leader in smartwatch shipments with a 20% market share. However, it saw a 9% year-on-year decline. The drop is notable as Apple typically holds strong during post-holiday quarters. Analysts believe this dip reflects a broader saturation of high-end smartwatches and consumer delays in upgrading devices.
Despite the decline, Apple’s ecosystem lock-in and consistent product quality helped it retain a strong foothold. However, increased competition and shifting regional dynamics may require the brand to innovate further to stay ahead.
China’s Comeback: 37% Growth
While most global markets struggled, China’s smartwatch sector posted a remarkable 37% year-on-year growth — its strongest performance since late 2020. Domestic players like Huawei, Xiaomi, and Imoo contributed significantly to this surge.
Huawei saw an impressive 53% growth in shipments, driven by its growing portfolio of affordable yet capable smartwatches. Xiaomi matched that growth rate, increasing its market share from 6% to 10%. Imoo, focused on the kids’ smartwatch segment, also benefited from China’s growing tech-conscious parenting culture.
This regional surge is believed to be the result of strong consumer trust in local brands, aggressive pricing, and a renewed emphasis on health and fitness features post-pandemic.
India Market Cools Off
India, previously the fastest-growing smartwatch market, experienced a sharp reversal with shipments plunging by about 33%. The decline marks the country’s lowest shipment figures in over a year.
Experts attribute this to a number of factors: high channel inventory, reduced consumer demand in the entry-level segment, and a general post-festival sales slowdown. Several Indian and budget-focused brands lost share during this period.
North America Also in Decline
North America also recorded a shipment decrease of around 11% year-over-year. While not as dramatic as India’s drop, the figures still reflect cooling interest and longer replacement cycles in mature markets.
Buyers in this region are now prioritizing quality over quantity, leaning toward devices that offer deeper integration with their smartphones and digital lifestyles. The mid-tier segment is gaining traction, while ultra-budget models are falling out of favor.
Brand-by-Brand Performance Highlights
- Apple: Retains leadership with 20% market share, down 9% YoY
- Huawei: Surges with 53% shipment growth and solidifies second place
- Xiaomi: Grows 53%, increasing market share from 6% to 10%
- Samsung: Slips significantly with a decline between 18–23%, now holding about 7% of the market
- Imoo: Continues to dominate in the kids’ smartwatch category
- Other Brands: Combined shipments declined by 17%
The Rise of Mid-Range Devices
Consumers are shifting focus from ultra-budget models to more capable mid-range devices. Smartwatches priced between $100–$200 saw a 21% increase in shipments. Meanwhile, models priced below $100 dropped 17% compared to the same period last year.
This trend signals growing consumer interest in features like blood oxygen monitoring, improved battery life, and better app ecosystems — even if that means spending a bit more.
Kids’ Smartwatches Gain Momentum
Smartwatches designed for children are becoming a standout segment globally. Brands like Imoo are expanding their presence across North America, Europe, and parts of Asia.
Parents are increasingly seeking devices that help them stay connected with their kids while delaying full smartphone adoption. Features like GPS tracking, limited calling, and classroom modes are drawing in cautious buyers.
Outlook for 2025: Modest Rebound Expected
Despite the current challenges, analysts expect the smartwatch market to recover slightly by the end of 2025. A modest 3% rebound in global shipments is projected for the full year.
The expected growth will likely come from:
- New AI-enabled features
- Advanced health monitoring tools
- Wearables with certified medical-grade sensors
- Growing demand in developing markets
- A focus on premium design and functionality
Manufacturers are also expected to double down on ecosystem integration, making their smartwatches more indispensable to users through deeper connections with smartphones, earbuds, and other devices.
Final Thoughts
The global smartwatch market continues to face headwinds, especially in India and North America. However, the rapid growth in China and the consumer shift toward mid-range and kids-focused devices show that the industry is evolving — not collapsing.
To regain momentum, brands must focus on user experience, value, and innovation. The days of flashy features without substance are over. In 2025, consumers want meaningful technology on their wrist, not just another screen.
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