Apple Watch sales have been declining for two consecutive years, with shipments dropping 10% in 2023 and 19% in 2024. This marks the first time since its 2015 launch that the Apple Watch has experienced back-to-back annual declines. In the advanced smartwatch segment, Apple’s market share decreased by 8 percentage points year-over-year in 2024, with Q4 2024 being the fifth consecutive quarter of declining shipments.
Stagnation in Innovation
The downturn is attributed to several factors. The absence of new models, such as the Apple Watch Ultra 3 and an updated Watch SE, contributed to decreased consumer interest. Additionally, the Series 10 offered only modest updates, leading to a perception of stagnation. These factors, combined with increased competition from brands like Huawei and Xiaomi, have eroded Apple’s market share in the smartwatch segment.
Competition Heating Up
While Apple remains the leading smartwatch vendor globally, competitors are gaining ground. Brands like Huawei and Xiaomi have introduced feature-rich smartwatches at competitive prices, attracting consumers seeking value and innovation. This increased competition has further pressured Apple’s market share in the smartwatch segment.
Consumer Sentiment
Consumer feedback reflects growing dissatisfaction. Many users’ express frustration over the lack of significant upgrades and the removal of features like the blood oxygen sensor due to patent disputes. Some are holding onto older models longer, citing insufficient reasons to upgrade.
Apple is expected to release new models, including the Apple Watch Series 11, Ultra 3, and SE 3, in September 2025. These updates may include enhanced health monitoring features and improved battery life. However, to reverse the declining trend, Apple will need to deliver meaningful innovations that resonate with consumers.
