Global Smartwatch Sales Plummet: The Rise and Rise of Xiaomi!

One of the most popular technological trends for years has been smartwatches, but 2024 has brought something unexpected. With a 7% decline in sales from the previous year, the worldwide smartwatch market has seen its first-ever contraction.

Surprisingly, Xiaomi is gaining significant headway while Apple, the longtime leader in the sector, is losing ground. What is the reason for this change? Let’s have a look at it.

Apple’s Sales Are Slipping—What’s Going On?

Apple has dominated the smartwatch world for nearly a decade, but 2024 hasn’t been kind to the tech giant. The company’s shipments have dropped by 19%, and its market share has fallen from 25% to 22%. Here’s what went wrong:

• Nothing New to Be Excited About: It was difficult to persuade users to upgrade the Apple Watch Series 10 because it only came with minor changes.
• Legal Issues Slowing Things Down: Earlier this year, Apple’s smartwatch business was disrupted by legal disputes with firms such as AliveCor and Masimo.
• No Low-Cost Choice: Since Apple failed to introduce a new SE model, consumers are now searching for less expensive options.

In North America, where more consumers are sticking with their outdated smartwatches rather than buying new ones, Apple has suffered its largest losses. Many buyers are asking themselves, “Why spend money on a new watch that’s only slightly better than the old one?” as there have been less significant advancements.

Xiaomi’s Huge Comeback—What’s Driving Its Success?

While Apple struggles, Xiaomi is absolutely thriving. The Chinese brand saw a whopping 135% increase in smartwatch sales this year, making it one of the fastest-growing brands in the market.

So, what’s Xiaomi doing right?

• Affordable Prices, Great Features – Xiaomi smartwatches are packed with high-end features but come at a fraction of the price of an Apple Watch.
• A Watch for Every Budget – The brand’s lineup includes everything from premium models like the Xiaomi Watch S1 to budget-friendly Redmi smartwatches, making them accessible to more people.
• Expanding Into New Markets – Xiaomi has been aggressively pushing into India, Latin America, and Southeast Asia, where demand for affordable smartwatches is booming.

For the first time ever, Xiaomi has broken into the top five smartwatch brands globally, proving that people are willing to look beyond Apple and Samsung.

Where Are Smartwatches Selling (and Where Are They Not)?

Another big change in 2024 is where smartwatches are selling well—and where they’re slowing down.

• China Is Now the Biggest Market – China has overtaken North America and India as the world’s largest smartwatch market, thanks to strong sales from brands like Huawei, Xiaomi, and Imoo.
• North America Is Cooling Off – Fewer people in the U.S. and Canada are upgrading their smartwatches, leading to a drop in sales.
• India Is Holding Strong – While some markets are slowing down, India continues to show steady demand, especially for budget-friendly smartwatches.

How Other Brands Are Doing

Apple and Xiaomi weren’t the only ones making headlines in 2024. Here’s how other major players performed:

• Huawei – 35% growth in shipments, holding onto its spot as the second-largest smartwatch maker.
• Samsung – A small 3% increase, helped by the release of the Galaxy Watch 7 and Galaxy Watch Ultra.
• Garmin and Fitbit – Both saw a slight decline as consumers leaned toward cheaper options.

A New Trend: Smartwatches for Kids

One of the most surprising trends this year? Smartwatches for kids are becoming a big deal. More parents are buying them to keep their kids safe and connected—without giving them a full smartphone.

• Why It’s Growing – Parents like the idea of tracking their kids’ location and letting them call home without the distractions of a regular phone.
• Who’s Leading the Market? – Imoo is currently the biggest player, but brands like boAt, Noise, and even Google’s Fitbit are jumping into this growing category.

What’s Next for Smartwatches?

Even though 2024 was a rough year for the industry, experts believe smartwatches will make a comeback in 2025—just not as quickly as before.

Here’s what’s likely coming next:

• Smarter Health Features – Expect smartwatches to add more advanced health tracking, including sleep apnea detection, blood sugar monitoring, and even early signs of heart disease.
• AI-Powered Smartwatches – Companies will start using artificial intelligence to offer more personalized fitness and health coaching.
• More Government Regulations – As smartwatches take on a bigger role in health tracking, companies will need government approvals for new features, which could slow down some product launches.

The Bottom Line

The smartwatch market isn’t dead, but it is changing. Apple is facing real competition, and brands like Xiaomi and Huawei are proving that people want more than just high-end options.

2024 was a wake-up call for the industry. Consumers aren’t upgrading as often, and smartwatch companies will need to work harder to convince people that new models are worth the investment.