Apple's global smartwatch shipments declined by 19% year-over-year in 2024, marking the company's second consecutive annual drop and the fifth straight quarter of falling sales, according to new data from Counterpoint Research.
According to Counterpoint's Global Smartwatch Shipment Tracker for the fourth quarter of 2024, Apple experienced shipment declines in all major regions except India. The most significant drop occurred in North America, which accounts for more than half of Apple Watch shipments globally.
The report identifies multiple contributing factors behind the sustained downturn. Chief among them is the absence of a new Apple Watch SE model, which has historically served as Apple's most popular smartwatch in terms of volume during post-launch periods. The last SE model came out in the third quarter of 2022 and its continued absence throughout 2024 is cited as a key driver of weakened shipment growth.
The Apple Watch Series 10 was released in 2024, offering "fewer substantial upgrades" over its predecessor, which reduced consumer incentive to upgrade. The model was affected by ongoing legal issues in the United States, where Apple was required to remove the blood oxygen sensor feature from affected units due to patent litigation.
The lack of an Apple Watch Ultra 3 model in 2024 is also a contributing factor. The Apple Watch Ultra line had previously accounted for over 10% of Apple Watch shipments globally, but its share dropped to under 8% in the fourth quarter of 2024 in the absence of a new model. Counterpoint noted that this decline contributed measurably to Apple's overall shipment losses in the advanced smartwatch category, where Apple's market share fell by 8% points year-over-year.
Despite the contraction in shipments, Apple continues to dominate the advanced smartwatch segment by unit volume. However, the recent declines mark a reversal from earlier years of growth. According to previous Counterpoint data, Apple Watch shipments increased by 27% in 2021. In 2022, growth stalled and the company reported zero percent year-over-year change. This was followed by a 10% decline in 2023, which nearly doubled in scale in 2024.
The downturn coincides with stronger performance from rival smartwatch manufacturers. While Apple's global shipments contracted, all other major vendors in the advanced smartwatch category saw year-over-year growth, according to the report.
Rumors suggest that Apple is preparing to release a third-generation Apple Watch SE with a revamped design and potentially a lower price point, an Apple Watch Series 11 with new health monitoring capabilities and 5G connectivity, and an Apple Watch Ultra 3 with satellite connectivity. The new models should launch in the fall, likely alongside the iPhone 17 lineup.
