Smartwatches are gracing almost every other person’s wrist these days—precisely 454.69 million people worldwide own one of these wearables that track everything from your steps to sleep quality and even your mental health.
That said, even while so many of us have this health tracker strapped onto our hands, in 2024, smartwatch sales fell by 7% for the first time, according to Counterpoint Research’s latest report.
This downward trend can mostly be attributed to the decline in Apple Watch sales throughout the year. Even though Apple is still at the top of the table, it saw the highest decline percentage in sales of 19%. Counterpoint Research claims that this could be due to several reasons, including people opting out of an upgrade due to a lack of new features or design. The research firm also says it could be because their first-time experience with the watch didn’t go as planned.
On the flip side, Wear OS-powered watches and those running proprietary OSes scored some brownie points from customers as smartwatch sales saw a steady uptick this past year despite an overall slump across the globe.
Chinese brands like Xiaomi and Huawei saw exponential growth, especially the former making its way to the top five this year. Xiaomi also became the fastest-growing brand, seeing a 135% rise in sales, thanks to the Watch S1 and Redmi Watch series. Xiaomi also began selling new Wear OS models, such as the Xiaomi Watch 2 Pro, in the 4th quarter of 2023, which likely contributed to this massive growth in 2024.
Huawei scored second, seeing a 35% increase in sales, although it notably does not sell Wear OS watches. Samsung placed third overall and also witnessed a 3% growth, thanks to the Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE Series, as seen in the infographic above.
Apple in trouble?
Ten years ago, Apple released its first-ever Apple Watch Series, which was initially seen as a fashion accessory. That slowly took a turn to become the multi-faceted fitness tracker it is today.
According to data from Demandsage (a research firm), Apple rules 21% of the global smartwatch market, but the recent decline in sales for the first time points to evolving customer preferences, increased competition from other brands, and a slowing upgrade cycle.
“Apple’s steep decline was a result of the combination of Apple’s infringement lawsuit against Masimo, increasing market competition, less significant upgrades in Watch Series 10, and the absence of Watch Ultra 3,” Counterpoint’s Senior Research Analyst Anshika Jain told Android Central in an email.
The absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases
Senior Research Analyst Anshika Jain
Much like its iPhones today, Apple has stuck to the same Watch design for years. The first significant change showed up on the Apple Watch 4, which brought about larger screens and a more defined casing while maintaining the same rounded rectangular dial. Later the Series 7 brought with it thinner bezels, and even more larger screens. Cut to the Series 8, where Apple decided to give its watches a more rugged look and launched the Ultra (a sight for sore eyes).
Don’t get me wrong, Apple has brought several advancements in tech, sensors, and processors over the years. But its overall “look” at first glance remained the same.
According to Gemini’s AI Overviews, “people generally upgrade their Apple Watches every 2-3 years.” Or when they notice significant performance issues or a life-altering feature, they’d want to ditch a year-old watch for a new one. For instance, I currently own an Apple Watch Series 8, which was a replacement and not a planned upgrade.
My Series 6 stopped working after water damage while swimming, which made it practically unusable. The Series 8 brought with it features that track women’s health better, and for someone with a history of polycystic ovarian syndrome, owning a watch that predicts ovulation cycles was a neat feature to have, and I continue to use it to date.
Jain also agrees that “the absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases,” especially in North America— which was the biggest driver of this decline in sales for Apple.
Wear OS shines through
Wear OS is the only real alternative if you want app support and rich notifications
Nick Sutrich
While it would be unfair to pit Apple against the broader variety of Wear OS watches, due to the sheer number of manufacturers involved. However, as much as it isn’t fair, Wear OS has become the undeniable alternative for many, sporting a ton of options, has seamlessly integrated into the Android ecosystem without people needing to change devices, and does almost everything that an Apple Watch could do.
Android Central’s senior editor, Nick Sutrich, who uses a OnePlus Watch 3, highlights the same. Switching between the Pixel Watch 3 and the OnePlus Watch 3, Sutrich says that he has two main reasons why the Apple Watch just isn’t for him. One, it’s incompatibility with Android, and two, he hates the shape they come in.
“Wear OS is the only real alternative if you want app support and rich notifications,” Sutrich said. “I’d say I don’t have a perfect choice at the moment. I prefer the Pixel Watch’s size but like the OnePlus Watch 3’s design and its battery life,” Sutrich explained, demonstrating the flexibility that Wear OS watches bring, allowing users to pick between features that matter the most to them.
Beyond that, Wear OS, much like Android, is an open ecosystem that allows more freedom in terms of app availability and customization; for instance, Wear OS users can even create their own watch faces using the Watch Face Format available to those with a developer account. This freedom of personalizing your wearable without worrying about the phone’s compatibility appeals to several people who choose to use a Samsung or a Pixel smartwatch over an Apple.
Furthermore, the affordability and hardware variety of Wear OS also drives people to reach for them. The recent decision of OEMs like OnePlus, Xiaomi, and OPPO to join the Wear OS family, which was mostly dominated by Samsung and Google, has not only resulted in a diverse range of watch designs and styles to pick from but has also made smartwatches much more accessible for those on a tight budget. This might’ve potentially impacted Apple’s sales as well, according to Jain.
“Huawei’s comeback with Harmony OS, the rise of Chinese brands like Xiaomi and Honor, and the adoption of Samsung’s newly launched Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series intensified competition for Apple in 2024,” she added.
What does the future hold?
While the overall smartwatch sales did see a dip globally, this could also be attributed to several people wanting to move away from smartwatches for a much smaller fitness tracker like the smart ring. For instance, Android Central’s EIC, Shruti Shekar, says she never really cared for watches; after using the Apple Watch 5—which negatively impacted her mental wellbeing, she decided to get an Oura Ring.
“I took on the ring and found myself loving it so much more than the watch,” she explained. “I found the passive health nature of the Oura Ring a lot more up my alley than a watch.”
That said, the future of Apple and Wear OS watches seems promising as both brands are working on bringing advanced health-tracking features. For instance, the Apple Watch Series 11 is rumored to have blood glucose tracking and satellite messaging features in the next Watch Ultra, which could turn the tide in their direction, according to Jain.
“Apple is expected to recover in 2025 with a low single-digit YoY shipment growth.”
“This is based on the expectations of the introduction of a satellite messaging feature in Apple’s Watch Ultra 3 in 2025 and the anticipated launch of the Watch SE 3 with an upgraded design.”
Jain also points out that with the rising adoption of Wear OS, we could expect advanced health monitoring features, improved battery life, and greater emphasis on personalization and customization.
For instance, the next Pixel Watch could see a “rounded-edge bezel turned into a squeezable, touch-sensitive control interface,” along with a smartwatch “Fit Score” that informs the user of the”differences in wrist size, skin color, hair density, BMI, fat percentage, and the likes.”
Integrating AI into their products could also push sales in the right direction. With more comprehensive health-tracking analysis combined with powerful hardware, like “health sensors for measuring bodily signals such as serious heart health tracking, focusing on atrial fibrillation, sleep apnea, hypertension, and diabetes to sustain their position in the market,” Jain explained.