Apple (AAPL, Financials) saw its smartwatch shipments fall 19% year over year in 2024, contributing significantly to the 7% decline in global smartwatch shipments, marking the industry's first annual drop, Counterpoint said in a research report. Slowing demand, supply chain problems, and inadequate innovation in important product areas drove the recession.

The lack of the Apple Watch Ultra 3, little S10 series upgrade, and patent conflicts upsetting shipments in early 2024 helped to explain Apple's declining smartwatch sales. The business also did not introduce a new Apple Watch SE, and declining demand in North America further hindered sales.

Supported by the Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE Series, Samsung Electronics saw a 3% year-over-year rise in smartwatch shipments. These devices helped Samsung maintain its leadership in the market for smartwatches.

By 2024 China will surpass North America and India to rank as the biggest smartwatch market worldwide. While Xiaomi exploded 135%, Huawei increased shipments by 35%. The brand of smartwatches for the kids, imoo, also showed a 22% annual increase. Strong local consumer demand for homegrown brands and a varied product selection across several price points helped to promote growth.

With a single-digit percentage increase predicted, the worldwide smartwatch industry is estimated to rebound just moderately in 2025. Industry trends hint toward more artificial intelligence integration and sophisticated health-tracking sensors including capabilities for atrial fibrillation, sleep apnea, hypertension, and diabetes. Performance of the wristwatch sector will rely on developments in consumer demand across important areas as well as creativity in both Android and iOS ecosystems.