Apple Watch sales continue to decline, but the reasons for this trend are straightforward.
Although the Apple Watch has gained popularity since its initial release in 2015, recent sales figures for the tech giant's smartwatch have shown a downward trend.
New data from Counterpoint Research reveals that Apple’s smartwatch shipments dropped by a notable 19% year-on-year in 2024, with declines observed across all regions except India.
Counterpoint attributes the overall decrease in Apple Watch sales primarily to a downturn in North America, which accounts for over half of Apple’s smartwatch shipments.
Importantly, this marks the second consecutive year of declining sales for the Apple Watch. In fact, the last quarter of 2024 represented the fifth successive quarter of reduced shipments for Apple’s smartwatch, contrasting sharply with other leading smartwatch manufacturers that experienced growth.
So, what challenges is Apple facing in moving the Apple Watch from store shelves to consumers' wrists? Counterpoint analyst Balbir Singh indicated that the drop in 2024 stemmed from several factors, notably the lack of significant upgrades to the Watch Series 10, which was released the previous fall.
Singh also mentioned that Apple didn’t launch a Watch Ultra 3 or a new Watch SE at last year’s smartwatch event, which would have likely spurred sales.
The Apple Watch Ultra is Apple’s premium model, last updated in 2023, while the more budget-friendly SE was refreshed in 2022.
Another factor contributing to the declining sales could be that Apple's smartwatches are priced higher than many competing options that offer a reasonable range of features.
“To rebound in 2025 and maintain its market share,” Singh stated, “Apple must concentrate on a few key areas, including the introduction of new features, the launch of new Watch SE and Watch Ultra models, and potential design revisions.”
Several reports and leaks suggest that both the Apple Watch Ultra 3 and Apple Watch SE 3 might debut in September alongside the Series 11. If this materializes, 2025 could potentially see a turnaround in Apple Watch sales.
Apple does not disclose official, detailed sales figures for the Apple Watch in its financial reports; instead, it categorizes Apple Watch sales under “Wearables, Home and Accessories,” meaning only third-party estimates for specific unit sales are available.
Various research firms, including Counterpoint, utilize a combination of consumer surveys, market analysis, and channel data to produce estimates in the absence of official sales statistics from Apple.
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Apple Watch sales continue to decline, but the reasons for this trend are straightforward.
Recent studies indicate a decrease in Apple Watch sales for the second consecutive year — and we believe we understand the reason behind it.