Counterpoint Research: Q1 global smartwatch shipments fell 2% year on year, showing a decline for the fifth consecutive quarter

The Zhitong Finance App learned that according to the “Global Smartwatch Shipment Tracking Report for the First Quarter of 2025” released by Counterpoint Research, global smartwatch shipments fell 2% year on year, and there has been a year-on-year decline for the fifth consecutive quarter. Among them, the continued slowdown in the Indian market and the decline in Apple smartwatch shipments are the main downside factors. In contrast, the Chinese market performed well, with shipments increasing sharply by 37% year over year, pushing China's share in the global market to the highest level since the fourth quarter of 2020. This growth is due to the strong performance of leading domestic brands, which are rapidly expanding, driven by both local market demand and cost-effective product strategies.

Share of global smartwatch shipments by brand, Q1 2025 vs Q1 2024

Source: Counterpoint Research “Global Smartwatch Model-Level Shipment Tracking for the First Quarter of 2025”

Although Apple (AAPL.US) has experienced a year-on-year decline in shipments for six consecutive quarters, it still ranks first in the global market, benefiting from its growing iOS user base. Followed by Huawei and Xiaomi (01810), achieved significant increases in shipments this quarter, mainly due to their strong local performance, rich product portfolio, and competitive pricing strategies for the middle and high-end markets.

In contrast, Samsung's predecessor products did not perform well in major global markets, leading to an 18% year-on-year decline in quarterly shipments.

Senior analyst Anshika Jain commented, “In the first quarter of 2025, the Chinese market achieved a 37% year-on-year increase in shipments. The strong performance of Huawei, Little Genius, and Xiaomi was the main driving force. These Chinese brands have not only consolidated their position in the domestic market, but have also gained attention in the international market, intensifying competition with mainstream global brands. Among Chinese consumers, brand loyalty is driven by a combination of national sentiment, government support, and the advantages of local brands in terms of technological innovation and price level coverage.”

Global smartwatch shipments by region, 2025 Q1 vs 2024 Q1

Source: Counterpoint Research “Global Smartwatch Model-Level Shipment Tracking for the First Quarter of 2025" *Note: Percentages may not equal 100% due to rounding. *LATAM: Latin America; MEA: Middle East and Africa; AP ex CH, IN: Asia Pacific (excluding China and India); NAM: North America

Research analyst Balbir Singh notes in response to price range trends: “The global smartwatch market is experiencing a significant shift in consumer preferences. Consumers are gradually moving to a higher price segment, seeking richer functionality and long-term use value. Shipments in the $100 to $200 price range increased 21% year over year, indicating that demand for products with enhanced health and fitness functions continues to rise. On the other hand, entry-level (under $100) products experienced a 17% year-on-year decline, indicating that consumers are more willing to pay a premium for accuracy, stability, and ecological compatibility.”

Singh added, “The children's smartwatch category continues to grow significantly around the world, and Little Genius continues to lead the way with high cost performance and rich features. China is still the largest market for children's smartwatch shipments, and other regions such as North America, Asia Pacific, and Europe have also achieved considerable growth. “This trend reflects parents' increased concern about children's location tracking and the desire to delay the use of smartphones by their children.”

Jain further stated about the outlook for the global smartwatch market: “The market is expected to recover moderately at a rate of about 3% in 2025. The key to driving the recovery is the evolution of product capabilities — manufacturers are speeding up the integration of AI functions and next-generation health sensors into devices. At the same time, the promotion of regulatory approval is also making it possible for some smartwatches to obtain medical grade certification, thereby expanding their use scenarios other than lifestyle and health monitoring.”

“We are also observing that consumer behavior is changing, and their focus on product functionality, long-term value, and ecological compatibility is replacing focus on novelty. This trend is driving the market towards higher-end models, and users are more likely to choose reliable devices that support their health, productivity, and lifestyle goals.