The global smartwatch market recorded a 2% year-on-year (YoY) fall in shipments for Q1 2025, marking the fifth straight quarter of decline, according to new data from Counterpoint Research.

Weakening demand in India and falling shipments from Apple were key contributors to the downturn.

Despite the broader slump, China defied the trend with a staggering 37% YoY growth in shipments.

Local brands Huawei, Imoo, and Xiaomi led the charge, pushing China’s market share to its highest level since late 2020.

Analysts attribute the country’s resurgence to cost-effective offerings, rising brand loyalty and growing demand for kids’ smartwatches.

Apple retained its global leadership despite a decline in volumes due to a loyal iOS base.

Meanwhile, Huawei and Xiaomi posted strong shipment growth, supported by diversified lineups and competitive mid-to-premium pricing.

Samsung fared poorly, with its older models underperforming globally, leading to an 18% YoY drop in shipments.

Consumers globally are shifting towards mid-range smartwatches with more robust health features. Shipments in the AUD $150–$300 bracket grew 21%, while entry-level models priced below AUD $100 fell by 17%, signalling growing demand for accuracy, durability and deeper ecosystem integration.

The kids’ smartwatch segment continues to boom, led by Imoo. China remains the biggest market, but regions such as North America, Europe, and the wider Asia-Pacific are seeing fast growth, driven by parental demand for location tracking and screen-time alternatives.

Looking ahead, Counterpoint forecasts a 3% rebound in global shipments by year-end, led by AI integration, advanced health sensors, and regulatory steps towards medical-grade wearables.

Analysts expect premium models to gain further traction as users demand more functional, lifestyle-oriented devices.

Senior Research Analyst Anshika Jain said: “Among Chinese consumers, brand loyalty is reinforced by patriotic sentiment, government support, as well as the appeal of homegrown brands offering cutting-edge technologies and a diverse product range covering all price tiers.”