Although China’s smartwatch shipments fell 9.3% YoY in 2022, mainly due to the COVID-zero policy’s impact on demand, Apple stood out by delivering 22% Year-over-Year growth for Apple Watch.

According to a new report by Counterpoint, Huawei and Apple dominated the China smartwatch market in 2022, with their combined share rising to almost 50%. Only OPPO (105% YoY), Apple (22% YoY) and Huawei (9% YoY) grew YoY among key brands. Huawei took 27% market share while Apple took 20% market share. While OPPO had a huge leap in shipments, their market share was only 3% overall.

Senior Analyst Ivan Lam said, “The demand for high-end and premium segments remained relatively strong in 2022, despite the decline in consumer sentiment and global macro headwinds. This shift to the high-end segment is similar to the shift witnessed in the smartphone market in 2022. High-end smartwatch consumers usually have higher demands for health detection, communication and system features. Such consumers are also more loyal to the brand. In recent years, Apple and Huawei’s marketing efforts have led high-end consumers to view their smartwatches as professional-grade devices with advanced sports and health monitoring capabilities. These watches are also appreciated for their sleek and stylish designs, making them suitable for everyday wear.”

Good sales of Apple’s Watch Series 7 models, coupled with the newly released Watch Series 8 and Ultra models, helped Apple register 22% YoY shipment growth in China. Continued innovation in health monitoring functions, as well as the perfect data and interaction experience, drove Apple’s growth. Meanwhile, the Ultra has created a new segment of professional smartwatches, which helped Apple dominate the premium segments.

Huawei enjoys a good reputation among Chinese consumers. Driven by price cuts, its Children Watch 4 Pro ranked first in the bestseller list for the market in 2022. The Watch 3 Pro and GT 3 (46mm) were the other two top-three models for Huawei. The brand benefited from its relatively more focus on HLOS smartwatches, with its HLOS smartwatch shipments doubling in 2022 to support Huawei’s 9% YoY growth in 2022.

For more, read the full Counterpoint report.