Apple Watch Sales Suffer Major Setbacks

For two long years, the Apple Watch has seen a dramatic drop in global shipments, as detailed in a recent market intelligence report. This decline is even more troubling when you consider that rival premium smartwatch brands are thriving, enjoying an uptick in their own shipments during the same timeframe.

Examining the Reasons Behind the Decline

Experts point to a lack of compelling reasons for users to upgrade their devices as a primary factor in the downturn. Apple needs a fresh strategy, possibly involving new features and likely even a design overhaul, to reignite interest in the iconic wearable.

A Remarkable Journey

Initially, the Apple Watch struggled to find its footing in a crowded market. However, once Apple honed in on health and fitness tracking, it catapulted to the forefront of the smartwatch industry, witnessing impressive growth—up by 27% year-on-year as recently as 2021.

The Numbers Speak for Themselves

Fast forward to 2022, and that growth plateaued—zero growth year-on-year—and 2023 only saw further decline with a staggering 10% drop in shipments. Unfortunately, 2024 exacerbated the problem with an alarming 19% fall, particularly pronounced in the United States, which generates more than half of Apple's smartwatch shipments.

Widespread Market Impact

According to Counterpoint's Global Smartwatch Shipment Tracker, Q4 2024, Apple witnessed a staggering 19% year-on-year decline in shipments. This marks the second consecutive year of pronounced shipment drops, with the advanced smartwatch segment taking a hit as Apple's market share plummeted by 8 percentage points.

Challenges for the Apple Watch Ultra

Even the premium Apple Watch Ultra isn’t immune to this trend, falling from over 10% market share to below 8%. The report highlights that consumers are simply not being given enough incentive to make the leap to newer models.

The Road Ahead for Apple

To turn the tide in 2025, Apple must step up its game. Key strategies could include introducing exciting new features, launching new SE and Ultra models, and considering design upgrades. If they don’t act soon, they risk losing further ground to their competitors in the ever-evolving smartwatch market.