Global sales of smartwatches have fallen for the first time, new figures indicate, in large part due to a sharp decline in the popularity of market leader, Apple.
Market research firm Counterpoint says 7% fewer of the devices were shipped in 2024 compared to the year before.
Shipments of Apple Watches fell by 19% in that period, Counterpoint says.
It blames the slump on a lack of new features in Apple’s latest devices, and the fact a rumoured high-end Ultra 3 model never materialised.
“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,” said Counterpoint senior research analyst Anshika Jain.
Apple was also hit with sales and import bans in the US in late 2023 and early 2024 over a disputed patent regarding blood oxygen level monitoring – which Ms Jain says also contributed to lower sales figures in the first half of 2024.
It retained 22% of market share in the final three months of 2024, down from 25% a year earlier.
Despite the overall decline, last year did see a massive rise in sales for Chinese-made smartwatches from brands such as Xiaomi, Huawei and Imoo.
Sales in China also grew from 19% of the market to 25% in the year from the last quarter of 2023.
This was the first time it recorded more smartwatch sales than India or North America, according to Counterpoint.
“Huawei, Imoo and Xiaomi were the front runners of the China market,” said Ms Jain.
The Chinese manufacturers also appeared to tap into another trend – the growing popularity of smartwatches for children, the only segment of the market to grow in 2024.
Imoo, known in China as “Little Genius”, specialises in children’s smart watches and saw a 22% rise in shipments.
“The kids’ smart watch segment is gaining traction as parents are concerned for their children’s safety, and they desire to track and stay constantly connected with their children,” Counterpoint’s Balbir Singh said.
But Imoo was eclipsed by a 135% rise in shipments from Beijing-based tech company Xiaomi.
Its Smart Band activity trackers sell for a fraction of the price of rivals made by Apple and Samsung.
Another large contributor to the global sales drop was India, which fell from 30% of the market to 23%.
Counter says it expects a small recovery with “single-digit percentage growth in 2025”.
It predicts the uptick in sales will be driven by the increasing adoption of AI features, and a greater emphasis of providing a wider range of health data.