Apple leads the global smartwatch market but Chinese players close the gap

Apple Watch

Global smartwatch shipments dipped 2% year-on-year (YoY) in Q1 2025, marking the fifth consecutive quarter of decline, according to Counterpoint Research’s latest Smartwatch Shipments Tracker. The slowdown was driven primarily by shrinking Apple Watch volumes and the continued deceleration of India’s once-booming market.

In contrast, China posted a 37% YoY growth, its strongest showing since Q4 2020. Domestic brands like Huawei, Imoo, and Xiaomi saw surging demand, both locally and in international markets. China’s resurgence pushed its global market share to its highest in years, fueled by cost-effective strategies, patriotic brand loyalty, and growing government support.

Despite logging its sixth consecutive YoY decline, Apple retained its top spot in global market share, buoyed by a steadily expanding iOS user base. Huawei and Xiaomi followed with impressive growth, thanks to broad product portfolios and aggressive pricing in the mid-to-premium range. Samsung, however, saw shipments fall 18% YoY, affected by declining sales of previous-gen models across key markets.

The market also showed shifting consumer preferences. Shipments in the $100–$200 price band grew 21% YoY, indicating rising demand for better health tracking and long-term value. Entry-level models under $100 saw a 17% decline, highlighting waning interest in basic wearables.

The kids’ smartwatch segment remained a bright spot, with Imoo maintaining its lead. China led global shipments, but growth was also strong in North America, Asia Pacific, and Europe, driven by parental interest in location tracking and delaying smartphone exposure.

Looking ahead, analysts expect a modest 3% growth in 2025, driven by AI features, better health sensors, and movement toward medical-grade smartwatch certification. Consumers are increasingly prioritizing reliability, ecosystem integration, and functionality over novelty — a trend that could push the market toward more premium, future-ready devices.