The global smartwatch market witnessed a 2% year-on-year (YoY) decline in shipments during Q1 2025, marking the fifth consecutive quarter of negative growth, according to Counterpoint Research. This slowdown was primarily attributed to a cooling demand in the Indian market and a significant drop in Apple’s shipments, although Apple continued to retain its position as the global market leader.

Conversely, China emerged as a bright spot, with a remarkable 37% YoY increase in smartwatch shipments—its highest market share since Q4 2020. Chinese brands such as Huawei, Imoo, and Xiaomi played a crucial role in this surge, offering competitively priced models that appealed to a growing domestic consumer base.

Q1 2025 Global Smartwatch Shipment Share & YoY Change

Apple – 20% (↓ 9% YoY): Despite a dip, it held on to its top position thanks to a robust iOS ecosystem.

Huawei – 16% (↑ 53% YoY): Showed impressive growth powered by a diverse mid-to-premium product portfolio.

Xiaomi – 10% (↑ 53% YoY): Equaled Huawei’s growth with value-for-money offerings and expanding brand influence.

Samsung – 7% (↓ 18% YoY): Experienced lower demand, especially for its older-generation models.

Imoo – 7% (↑ 23% YoY): Led the kids’ smartwatch category through affordable, feature-rich devices.

Others – 40% (↓ 17% YoY): Declined as dominant brands consolidated their market share.

Regional Insights

Senior Research Analyst Anshika Jain highlighted that China’s smartwatch market growth was largely propelled by domestic players expanding internationally. Factors contributing to this momentum include:

Strong brand loyalty driven by patriotic sentiments

Government-backed initiatives

Advanced, cost-effective local technology available across price tiers

India, which had been a major contributor to global growth in previous years, experienced a decline in Q1 2025, pulling down overall shipment figures.

Market Pricing Trends

Research Analyst Balbir Singh noted a notable shift in consumer purchasing behavior toward premium smartwatch models:

The $100–$200 price segment grew by 21% YoY, reflecting increased demand for smartwatches offering accurate health monitoring, ecosystem integration, and better overall performance.

The sub-$100 segment dropped by 17% YoY, suggesting waning interest in entry-level models as users opt for more feature-rich alternatives.

Kids Smartwatch Category

The global kids’ smartwatch segment continued to expand, led by Imoo. The highest growth was observed in China, followed by increased traction in North America, Asia Pacific, and Europe. Singh attributed this trend to:

Parental interest in real-time location tracking

Delayed smartphone adoption for children

Market Outlook for 2025

Looking ahead, Anshika Jain projects a 3% global smartwatch market recovery by the end of 2025. Several factors are expected to contribute to this rebound:

Integration of AI-powered features and next-gen health sensors that offer more personalized and predictive health insights.

Regulatory advancements enabling some smartwatches to qualify for medical-grade certifications, boosting credibility.

A shift toward premium wearable devices as users prioritize functionality, ecosystem synergy, and long-term wellness solutions.

With evolving consumer expectations and increasing innovation, the smartwatch market is poised for a turnaround, led by technology integration and value-driven design.

Conclusion

Despite current headwinds, the smartwatch industry remains resilient and poised for growth. As AI-driven capabilities and health-focused functionalities become central to user experience, brands that deliver integrated, reliable, and personalized solutions will emerge as leaders in the coming quarters.

Source @ counterpointresearch