Global smartwatch shipments fell 7% YoY in 2024, the market’s first ever decline, according to Counterpoint’s latest Global Smartwatch Shipments Tracker by Model, Q4 2024. The downturn was primarily due to a decline in Apple’s shipments as the basic smartwatch segment saw lower upgrades amid a slowdown. Weakness in the basic smartwatch market originated in India, where consumer demand waned due to a slow replacement cycle, lack of innovation and unsatisfactory user experiences among first-time buyers.

Apple retained its top position in the global market, hoisted by its growing iOS user base, followed by Samsung, which witnessed 3% YoY growth as its newly launched Galaxy Watch 7, Galaxy Watch Ultra and Galaxy Watch FE Series saw strong adoption. Xiaomi made a remarkable entry, experiencing the fastest growth in 2024 and securing a spot among the top five for the first time.

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Commenting on Apple’s performance, Senior Research Analyst Anshika Jain said, “Apple Watch witnessed a decline in momentum on its 10th anniversary, despite the launch of the S10 series. 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. Additionally, patent disputes limited shipments in the first half of the year. The slowdown of the existing Apple Watch SE lineup and the lack of new SE models also contributed to the decline.”

Counterpoint also noted that "Kids smartwatch was the only segment to witness a rise, as parents' awareness increased, and brands expanded in this category." This is a market that Apple has avoided thus far.

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China's imoo that landed in fifth spot in 2024 sells the imoo Z1 (above) for $142 that provides HD Video calling and IPX8 waterproofing. That's pretty impressive considering that Apple doesn't offer FaceTime on any Apple Watch yet, discounting Avatar calls. While Apple has a few patents on this (01 and 02 with image below) they've yet to pull the trigger. 

In September 2023 South China Morning Post released a report titled "China’s Little Genius smartwatch for kids overtakes Apple Watch in home market thanks to features such as remote body temperature alerts."

Although Apple may never ever enter the kids smartwatch market, it's becoming a steady market in China that could force Apple's hand in an effort to protect its overall lead in China. It's a market worth keeping an eye going forward.