The future looks alarming for Apple's smartwatch division as new data reveals a staggering nearly 20% decline in Apple Watch shipments in 2024! This follows a 10% decrease in 2023, as reported by market research firm Counterpoint.

So, what’s behind this drastic downturn? While competitors like Huawei and Xiaomi flourish, Apple struggles. Analysts point to stagnant upgrades in the latest Apple Watch models and a surprising lack of interest in the Apple Watch 10—priced at $399—that fails to entice budget-conscious North American consumers.

But the pain may not end here! With rising tariffs and potential price hikes looming in 2025, U.S. consumers could face even steeper costs for Apple’s wearable technology. As tariffs on products manufactured in Vietnam tighten, experts warn that there's little hope for Apple or its supply chain to absorb these costs.

In an exclusive statement, Counterpoint's Research Director Jeff Fieldhack emphasized the repercussions of the Vietnam tariff scenario for U.S. buyers, saying, "If no trade deals are made, prices for consumers are likely to rise."

Despite these challenges, not all is bleak. Interestingly, India has emerged as a bright spot for Apple Watch shipments, defying the overall trend. Plus, the market for kids’ smartwatches is booming, showing promising growth in the global landscape.

To reignite year-over-year growth, Counterpoint advises Apple to innovate. A renewed focus on the Watch SE and Watch Ultra lines, paired with bold design enhancements, could be key to reviving consumers’ interest.

As the situation evolves, we're keeping a close watch on Apple's next moves—will they rise from the ashes or continue to struggle?