Global Smartwatch Market Contracts 2% in Q1 2025, China Bucks Trend

According to Counterpoint Research, global smartwatch shipments fell 2% year-on-year in Q1 2025, marking the fifth consecutive quarter of decline. The downturn was driven by a slowdown in India’s market and a contraction in Apple’s shipment volumes. However, China’s robust 37% growth provided a counterbalance, boosting its global market share to a level not seen since Q4 2020.

China’s Resilience Amid Global Decline

China’s smartwatch market surged, propelled by strong performances from domestic brands Huawei and Xiaomi. These companies capitalised on competitive pricing, technological innovation, and patriotic consumer sentiment to strengthen their domestic position significantly. Huawei and Xiaomi saw significant shipment growth, maintaining their positions in the mid-to-premium segments.  

India’s Market Slows

Previously a high-growth market, India experienced a notable deceleration, contributing significantly to the global decline. The slowdown reflects a maturing market where consumer demand is shifting toward premium devices with advanced health and fitness features. The entry-level segment (below $100) contracted by 17%, while the $100-$200 price band grew 21%.

Apple’s Challenges

Apple maintained its position as the global market leader, supported by its expanding iOS ecosystem. However, the company faced a highly concerning sixth consecutive quarter of year-on-year shipment declines. Competitive pressure from Chinese brands and a consumer shift toward devices offering advanced functionality at lower prices have challenged Apple’s dominance, particularly in markets like China and India.

Where’s Garmin?

Strangely, Counterpoint fails to mention Garmin, which is presumably accounted for in the burgeoning ‘other’ sector (40% share of shipments). Counterpoint must either not consider all Garmin watches as smart watches or its share I less than IMOO (7%), the company with the smallest share.

Market Outlook

Counterpoint Research projects a modest recovery for the global smartwatch market in 2025, with expected growth of 3%. This rebound will be driven by integrating AI features, next-generation health sensors, and regulatory advancements enabling smartwatches to serve as medical-grade tools. The company also believes consumer preferences are shifting toward premium models prioritising functionality, ecosystem compatibility, and long-term value, a trend likely to benefit established players like Apple and Chinese brands expanding their global reach.

My personal view doesn’t quite chime with Counterpoint. I agree that 2025 seems to be a great year from a techy, new product perspective, but there are ever-increasing pressures on those with moderate to low incomes, who I  am unconcined will top for high-featured smart watches en masse. That said, the more affluent people are more likely to afford more of the latest product, plus many of them are ageing and medical-grade, and healthspan support will continue to grow as a must-have feature.

As to Garmin. It’s hard to see the company not having a bumper 2025. I know from some of my contacts that some launches this year easily beat demand expectations.

Further Resources;

• Counterpoint Research