Apple Watch Shipments Plummet Amid Competitors Thrive

For the past two years, Apple Watch shipments have experienced a significant downward spiral. A recent market intelligence report highlights a stark contrast: while Apple struggles, competing premium smartwatch brands are seeing impressive growth in their shipments.

The Shift in Market Dynamics

The report attributes this decline to a lack of compelling reasons for customers to upgrade their devices. This situation prompts a pressing need for Apple to innovate with new features and even consider a fresh design to rekindle consumer interest.

Initially, the Apple Watch struggled to find its identity, but once Apple spotlighted health and fitness, it captured a substantial share of the smartwatch market. However, data from Counterpoint indicates that after a flourishing 27% increase in shipments through 2021, growth flatlined in 2022 and plummeted by 10% in 2023, further declining by an alarming 19% in 2024.

US Market Hit Hardest

This global decline is most pronounced in the US, where Apple’s smartwatch shipments fell 19% year-on-year in 2024, particularly affecting a market that accounts for over half of their smartwatch sales.

Despite an overall decline in shipments, competition is flourishing, with major companies in the advanced smartwatch sector gaining traction—Apple's market share dropped by 8 percentage points in this arena in 2024. In fact, Q4 of 2024 marked the fifth consecutive quarter of shipment declines for Apple, while rivals enjoyed growth.

What’s Behind the Decline?

Even the premium Apple Watch Ultra has seen its market presence dwindle, dropping from a solid 10%+ share to below 8%. Counterpoint emphasizes that consumers are simply seeing fewer incentives to make an upgrade.

Several factors contributed to this downturn: the absence of a new SE model made it tough for shipments to grow, alongside limited upgrades to the latest Watch Series 10 and formidable competition. Legal hurdles, such as the discontinuation of the blood oxygen feature, have also dampened Apple’s appeal.

Looking Ahead: Apple’s Path to Recovery

As Apple gears up for 2025, a proactive approach is crucial for reclaiming its market position. The company must prioritize launching new features, introducing updated Watch SE and Ultra models, and potentially reimagining the design to attract consumers back.

With a pressing need for innovation and reinvention, the next few years will be pivotal for the Apple Watch—can it rise from these two years of decline and reclaim its throne in the smartwatch market?