Has the smartwatch peaked? Apple Watch blamed for sales decline

The number of people buying smartwatches fell for the first time in the history of the category, according to newly published global sales figures.

The data from Counterpoint says shipments fell 7% in 2024. While that’s not a precipitous fall, the sector had previously grown each year prior to that. According to the research the slump may be down to the Apple Watch range falling out of favour somewhat.

Apple doesn’t reveal its individual sales figures for its market-leading wearable, but the market research company reckons the best Apple Watch shipments fell 19% last year.

That may have been down to the expected Apple Watch Ultra 3 pulling a no show last September, but it could also be approaching market saturation with more Apple Watches owners and keeping them for longer.

Counterpoint also suggested that the Apple Watch Series 10 could be to blame for “minimal feature upgrades,” but that’s not strictly accurate. It got a larger display than before, and added a great sleep detection feature.

Our reviewer called it the best smartwatch for iPhone users saying “it’s packed with health and wellbeing features, wonderful screens and more.”

Apple’s share of the global smartphone market did fall to 22% in 2024 (down from 25% in 2023) the research firm claims. That’s also down to improved showings in the far east from companies like Xiaomi, Huawei and Imoo, according to Counterpoint.

Sorry, but it’s nothing to do with the Ultra 3 miss

I disagree with the Counterpoint analysis. I don’t really think the absence of an Apple Watch Ultra 3 would have had that great an effect on the market. The Ultra is far from the most poplar Apple Watch and when Gen 3 didn’t arrive people may have just bought the Ultra 2 instead. The Apple Watch Series 10 wasn’t the smallest update we’ve seen from the company either.

I think this is more of a natural progression. Apple may simply be reaching a point where it has now sold an Apple Watch to most people who fancy one. Once you have one, you’re not going to update it every 3 years like a phone. You’re likely to keep hold of it until its no longer supported or it conks out.

Now that, of course, is a problem in itself. How does Apple reach more people after a decade of pitching the Apple Watch? The answer, it believes, is transitioning the range into a health-first wellness device with a series of potentially life-saving features that will appeal to users young and old.

Whether that strategy is succeeding remains to be seen. Purported sales drops would suggest there’s still work to do.