The Apple Watch is now 11 years old and is losing its edge. Competitors without screens are taking the lead in the upcoming phase.

      **TL;DR:** The innovation of the Apple Watch has stagnated as Whoop, Oura, and Fitbit Air lead in reimagining wearables. Key health executives are departing, and Oura has filed for IPO.

      The Apple Watch has reportedly generated around $100 billion in total sales and transformed the smartwatch industry. However, eleven years post-launch, its innovative momentum has decreased. According to Bloomberg’s Mark Gurman, Apple risks being outpaced in the next phase of the sector it originally influenced.

      Consumer interests are shifting away from devices with screens. Companies like Whoop, Oura, and Google's $100 Fitbit Air have established multibillion-dollar firms focused on screenless bands and rings that prioritize recovery, sleep, and passive health tracking. An increasing number of consumers prefer not to have another screen vying for their attention.

      Apple's Health app contributes to the issue. Despite substantial investments over the years, it remains cluttered, clinical, and ineffective at providing actionable insights. Gurman notes that it feels more like a clinical experience than a modern consumer platform, contrasting it with competing apps from Whoop and Oura, which are “in a different league.”

      Eddy Cue from Apple, who uses both Oura and Whoop, has advocated for wider changes to the health strategy internally. A previously ambitious AI health coaching service known as Mulberry was recently scaled back following Cue's leadership in the health division. Gurman predicts that new features from this project may not appear until later in the iOS 27 update cycle.

      The company is experiencing notable leadership changes. Former COO Jeff Williams, who managed health initiatives, retired last year. Tim Cook will step down as CEO in September, and Jay Blahnik, leader of Fitness+, is also leaving amid management-related legal issues.

      Recently retired was Stan Ng, the chief of Apple Watch marketing, along with senior marketing manager Eric Charles who left this month. Apple has gradually lost talent in health and hardware to Oura, indicating a significant loss of expertise.

      Incoming CEO John Ternus aims to maintain health as a central focus for Apple’s future, promising new services integrating hardware and AI. However, the turnover in leadership raises concerns about the company’s commitment to health technology.

      This year's watchOS 27 will prioritize stability and minor enhancements rather than introducing major features. Enhancements to heart-rate tracking are anticipated, but the update is more incremental than revolutionary.

      Apple has increasingly turned to promotions to boost Apple Watch sales, with Amazon and Best Buy offering deep discounts and the watch included in the education store with direct price cuts for the first time. Such strategies are uncommon for Apple hardware.

      The glucose monitoring initiative could represent a significant advancement. Initially conceived during Steve Jobs' tenure, the goal is to detect high blood sugar levels without finger pricks. Oversight of this project has recently transitioned from platform architecture chief Tim Millet to engineering leader Zongjian Chen, recognized internally for delivering results.

      This change is seen by some as a sign that development may be advancing toward a consumer-ready product. However, Apple's progress in health has been impeded by internal turmoil, delays, caution, and a tendency towards small improvements. The same risk-averse mindset that led Apple to miss opportunities in generative AI is becoming evident in wearables.

      iOS 27 will introduce several AI features, including natural language processing in the Shortcuts app, wallpaper creation through Image Playground, and an updated grammar checker. A revamped Siri app with auto-deleting chats is highlighted as the main consumer-focused AI feature. Yet, none of these directly address the gap in health and wearables.

      Oura, the Finnish smart ring manufacturer, has confidentially filed for a US IPO. Gurman suggests that Apple “probably should have acquired” Oura years ago; what could have been a potential acquisition is now preparing to go public as a competitor.

      The wearables market is diversifying rapidly. Meta sells seven million Ray-Ban smart glasses each year, while Apple is testing smart glasses for 2027 and Google is developing Android XR glasses with Samsung. The competition is expanding beyond just wrist-worn devices.

      Additionally, Apple announced that iOS 27 will support default AirPlay alternatives to comply with the EU Digital Markets Act, allowing users to set Google Cast or other services as their primary streaming choice. The settings panel for AirPods is also undergoing substantial changes.

      Tim Cook has expressed the desire for Apple to be remembered for its contributions to healthcare. The company that created the most successful smartwatch now faces a decision about whether to develop a screenless, AI-driven health device that aligns with market trends. If Apple does not act, competitors like Whoop, Oura, and Google already will.