Apple’s Big Smartwatch Problem: Here’s Why Sales Are Dropping Fast!

This is the first difficult period for the global smartwatch market in years. In 2024, shipments fell 7%, the first significant drop in the history of the sector. Apple, the long-standing leader, has suffered greatly, and Xiaomi is rapidly moving up the ranks.

What’s going on, then? Are we seeing a significant change in the smartwatch market, or is this only a brief downturn? Let’s have a look at it.

Apple’s Struggles: A Wake-Up Call?

Apple has been the king of smartwatches for years, but 2024 hasn’t been kind to the tech giant. The company saw a 19% drop in smartwatch shipments, bringing its global market share down from 25% to 22%.

Why the sudden decline? There are a few key reasons:

• Not Enough New Features: Many consumers didn’t think upgrading was worth it because the Apple Watch Series 10 didn’t bring anything revolutionary.
• No New Ultra Model: Although the Apple Watch Ultra has been a popular choice for high-end consumers, several users were upset when Apple failed to produce an upgraded model this year.
• Legal Issues: Apple had to eliminate several health-tracking capabilities in some areas because to ongoing patent issues, which decreased demand.

Although Apple is not currently in danger of losing its number one position, this drop is an obvious indication that the corporation cannot rely only on brand loyalty. Customers may start searching elsewhere if Apple fails to provide the genuine innovation they seek.

Xiaomi’s Meteoric Rise: What’s Behind the Surge?

While Apple struggled, Xiaomi had a blockbuster year. The Chinese tech brand saw an astonishing 135% increase in smartwatch shipments, making it one of the top five smartwatch brands in the world.

So, what’s Xiaomi doing right?

• Affordable Yet Feature-Packed – Unlike Apple, which focuses on high-end models, Xiaomi offers smartwatches with solid features at a fraction of the price.
• Appealing to a Mass Market – The company’s Redmi Watch series and Watch S1 models have been huge hits, especially in Asia.
• Dominating the Chinese Market – China has now overtaken India and North America as the largest market for smartwatches, and Xiaomi is perfectly positioned to take advantage of that.

Xiaomi’s rise shows that people are looking for value for money. Not everyone wants to spend hundreds of dollars on a smartwatch when they can get similar features for way less.

How Other Brands Are Doing

Apart from Apple and Xiaomi, other major smartwatch brands had mixed results this year:

• Huawei’s Comeback – Thanks to strong sales in China, Huawei saw a 35% increase in shipments, grabbing 13% of the global market.
• Samsung Holds Its Ground – Samsung saw a modest 3% growth, with the Galaxy Watch 7 and Ultra models keeping the company steady at 9% market share.
• India’s Market Slows Down – After years of rapid growth, India’s smartwatch market cooled off, with many users holding onto their older watches longer.

What’s Next for Smartwatches?

The big question now is: Will the smartwatch market bounce back in 2025? Experts think so, but companies will have to work harder to win over consumers.

Expect to see:

• Improved health tracking driven by AI: More intelligent fitness and health insights may be the next big thing.
• Extended battery life: The requirement for regular charging is one of the main grievances regarding smartwatches.
• More emphasis on affordability: Xiaomi’s success demonstrates that consumers like high-quality technology at more affordable prices.

This is a wake-up call for Apple. They will need to provide something genuinely innovative the next year if they are to maintain their position at the top. The difficulty for Xiaomi will be keeping up its pace and growing outside of its primary regions.

One thing’s for sure: the smartwatch market is changing fast, and the old rules don’t apply anymore.