Global Smartwatch Market Records Shipment Drop in Q1 2025
Global Smartwatch Market Sees Continued Slowdown in Q1 2025
The global smartwatch market experienced a setback in the first quarter of 2025, with a 2% year-on-year (YoY) decline in shipments. This marks the fifth consecutive quarter of decreasing sales, according to a recent report from Counterpoint Research. The report points to weakening demand in key markets like India and reduced shipments from major players as contributing factors to this downturn.
Weakening Demand and Market Shifts
India, a significant contributor to the global smartwatch market in previous years, witnessed a substantial drop in demand during Q1 2025. This decrease impacted numerous brands that had previously thrived due to the rapid growth of the Indian smartwatch market. The overall impact of this decline contributed significantly to the global slowdown.
Despite remaining the market leader with a 20% share, Apple also experienced a significant setback, recording a 9% YoY decline in shipments—its sixth consecutive quarterly drop. Counterpoint Research suggests that increased global competition is a primary factor contributing to Apple's struggles.
China's Smartwatch Market Shows Strong Growth
In contrast to the global trend, China saw a remarkable surge in smartwatch shipments, with a 37% YoY increase in Q1 2025. This represents China's highest global smartwatch shipment share since Q4 2020. The report attributes this growth to the success of domestic brands like Huawei and Xiaomi.
Both Huawei and Xiaomi reported impressive 53% YoY growth in smartwatch shipments during Q1 2025. This significant growth led to a notable increase in their global market share. Huawei's global share jumped from 10% to 16%, while Xiaomi's rose from 6% to 10%, solidifying their positions as major players in the global smartwatch market.
The Unexpected Success of Kids' Smartwatches
One unexpected bright spot in the Q1 2025 report was the performance of the kids' smartwatch segment. Imoo, a prominent Chinese brand also known as "Little Genius," achieved a 23% YoY increase in shipments. The company also saw a 1% increase in market share, reaching 7%, demonstrating the resilience of this niche market.
Samsung Faces Challenges
Samsung, despite launching its Galaxy Watch 8 series, saw a significant 18% YoY decline in smartwatch shipments in Q1 2025. Its global market share also dropped from 9% to 7%, indicating a substantial challenge for the company. The company will likely be hoping that the new watch series will improve results in future quarters. The "Others" category, encompassing smaller smartwatch brands, also experienced a 17% decline in shipments, resulting in a combined market share drop from 48% to 40%.
Shifting Consumer Preferences
The Counterpoint report highlights a notable trend: a growing preference for mid-tier and premium smartwatches priced between $100 and $200. This segment saw a 21% YoY growth. In contrast, the entry-level smartwatch market (under $100) experienced a 17% decline, indicating a shift in consumer spending habits towards higher-quality devices with more features.
Despite the overall negative trend in Q1 2025, Counterpoint Research forecasts a modest 3% recovery in global smartwatch shipments by the end of 2025. This suggests that while the market is facing challenges, there is potential for future growth, albeit gradual.
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