Will China be Able to Resuscitate the Smartwatch Market Following the Global Decline in Q1 2025?
In the ever-evolving world of technology, the smartwatch market is undergoing a significant transformation. Apple, long-standing market leader, has experienced a year-over-year decline in revenue and shipments for the sixth consecutive quarter, despite releasing innovative products such as the Galaxy Watch 8 series.
While Apple's dominance is largely supported by its strong iOS user base and premium device appeal, Chinese brands Huawei and Xiaomi are rapidly gaining ground. Huawei's impressive 50% growth in Q1 2025 and Xiaomi's 53% increase have notably contributed to a 37% year-over-year shipment growth in China, intensifying competition on both domestic and international fronts.
Samsung, once a formidable competitor, has seen its position weaken significantly. Despite the launch of the Galaxy Watch 8 series with advanced health tracking, AI integration, and design improvements, Samsung's overall smartwatch shipments declined by 18% year-over-year in Q1 2025. This has resulted in a 3.4 million unit shipment and a market share of 7.5%, placing Samsung fourth behind Apple, Huawei, and Xiaomi.
The market is experiencing a general decline for five to six consecutive quarters, driven partly by consumer reluctance to adopt wearable devices widely. However, growth pockets exist, especially in emerging markets like China, where local brands are strengthening their foothold and expanding internationally.
Innovation remains a key to differentiation. Samsung's focus on health tracking and AI capabilities aims at the premium segment but may face challenges in broader consumer adoption due to high prices and niche appeal. Chinese firms are expected to continue their aggressive expansion with competitive pricing and a broader product appeal, which could reshape the global market dynamics further.
In the summary table below, we can see the market leaders and trends in Q1 2025:
| Brand | Market Position | Shipment Trend Q1 2025 | Market Share | Key Strengths and Challenges | |-----------|--------------------|-----------------------|--------------|-----------------------------------------------| | Apple | Market leader | Declining shipments | ~15.5% | Strong iOS ecosystem, premium devices | | Huawei | Top contender | ~50% growth | Rising | Competitive pricing, strong domestic sales | | Xiaomi | Top contender | ~50% growth | Rising | Broad portfolio, international expansion | | Samsung | 4th place | 18% decline | ~7.5% | Innovation in design and health but higher cost limits mainstream growth |
The outlook suggests continued competitive pressure with innovation and affordability as critical drivers in the near future. Analysts expect a modest 3% rebound for the smartwatch market for the full year. Regional growth in the smartwatch market is no longer uniform, with China posting a 37% increase in smartwatch shipments in Q1 2025, making it the only major market to show such a surge.
Shipments in the $100-$200 price range for smartwatches grew by 21%, indicating rising demand for more capable, longer-lasting devices. Smartwatch sales in emerging markets, including Latin America, Middle East & Africa, and Asia-Pacific (excluding China and India), are showing signs of growth.
China's dominance extends beyond smartwatches, encompassing the entire wrist-worn device segment. The next wave of growth in the smartwatch market will come from smarter, more capable devices, including AI-powered features, advanced health sensors, and even medical-grade capabilities. As the market evolves, it seems clear that consumer expectations are shifting toward substance, integration, and long-term value.
Wearables such as smartwatches are seeing a surge in the Chinese market, with Huawei and Xiaomi showing impressive growth of 50% and 53% respectively, contributing to a 37% year-over-year increase in smartwatch shipments, making the competition more intense on both domestic and international fronts.
The global smartwatch market is witnessing a shift in consumer preferences, with affordability and innovation becoming critical factors, as evidenced by the growing demand for devices priced within the $100-$200 range.
