Apple, which has been the market leader in the smartwatch space, saw its market share drop from 25 percent in 2023 to 22 percent in the final quarter of 2024
Smartwatch sales have declined for the first time in 2024, with shipments falling by seven percent compared to the previous year, according to market research firm Counterpoint. This marks a significant shift for the once-booming wearable tech sector.
Anshika Jain, a senior research analyst at Counterpoint, pointed to North America as the primary driver of this decline. She explained that the lack of a new Apple Ultra 3 model and minimal feature upgrades in the Apple S10 lineup led to consumers postponing their purchases. Apple, which has been the market leader in the smartwatch space, saw its market share drop from 25 percent in 2023 to 22 percent in the final quarter of 2024.
The drop in smartwatch sales also reflects a shift in consumer perception of the technology. According to Leo Gebbie, principal analyst at CCS Insight, the smartwatch has transitioned from a “new and exciting gadget” to a more stable product with fewer dramatic yearly upgrades. “The feature set isn’t changing very dramatically year over year,” Gebbie told the BBC. This stabilization has contributed to the slowdown in demand.
Additionally, Gebbie noted that the “bubble” in the market for cheap, Indian-made smartwatches has burst. Many of these devices were met with dissatisfaction due to poor quality, leading to consumer complaints. Gebbie suggested that these companies would benefit from focusing on products with a longer lifespan and better durability.
Despite the decline, Counterpoint remains optimistic about the future of the smartwatch market. The firm forecasts single-digit percentage growth in 2025 as the market stabilizes and brands adapt to evolving consumer expectations. While 2024 marked a downturn, industry experts believe that the smartwatch sector will continue to evolve, with advancements in features and quality likely driving future growth. As the smartwatch market matures, brands will need to innovate and refine their products to meet the changing needs of consumers.
