Can China Save the Smartwatch Market After Q1 2025's Global Dip?
What top smartwatch brands can learn from the leading Chinese brands.
You can only sell a first smartwatch once. In 2019, buying a smartwatch meant it was probably your first one. Now in 2025, it feels expected to have one.
Like smartphones before them, smartwatches are hitting the maturity phase, and the category may finally be hitting its limit. Now, before considering an upgrade, price matters more, innovation is a big deal, and a dash of brand loyalty is needed.
This slowdown is beginning to show in the numbers as the global smartwatch market slipped 2% year-over-year in Q1 2025, continuing its downward trend. And underneath the headline decline, the competitive landscape is undergoing a noticeable shakeup, both by region and by brand.
A look at the smartwatch leaders and top contenders
We’re still seeing Apple at the top, but not as comfortably as before. Shipments dropped 9%, and its share edged down slightly to 20%. Samsung had an even tougher time, with an 18% drop, mostly due to weaker demand for older-generation models across key markets. These two giants aren’t going away, but they’re no longer dictating the direction of the market like they once did.
In contrast, Chinese vendors are gaining momentum fast. Huawei saw a 53% jump in shipments, boosting its global share from 10% to 16%. Xiaomi matched that growth rate and doubled its market share to 10%. Both benefited from strong domestic demand, wider product portfolios, and increasingly competitive offerings in the mid-range and premium segments. Imoo also climbed, up 23% year-over-year, driven by steady growth in the kids’ smartwatch market.
These gains coincided with a regional power shift. China posted a 37% increase in shipments, making it the only major market to show such a surge. It now ties India in terms of global contribution, each holding a 29% share, though moving in starkly different directions. India’s shipments dropped 33%, dragging down the global numbers and undercutting the growth it had consistently delivered in recent years.
In fact, a previous report by Techloy shows that China's drive extends beyond smartwatches and encompasses the entire wrist-worn device segment.
Emmanuel Oyedeji
Smartwatch sales in the emerging markets are showing signs of growth
Meanwhile, other regions showed signs of life. Latin America and the Middle East & Africa grew by 24% and 23%, respectively. Asia-Pacific (excluding China and India) posted a 14% rise, reflecting wider adoption across developing economies. But North America and Europe contracted, down 11% and 2%, highlighting maturity and saturation in key Western markets.
Consumer preferences are also evolving. Shipments in the $100–$200 price range grew 21%, pointing to rising demand for more capable, longer-lasting devices. Meanwhile, entry-level models under $100 saw a 17% drop, as buyers sought more value rather than just low prices.
Despite the recent slump, analysts expect a modest 3% rebound for the full year. The next wave of growth will come from smarter, more capable devices. Think AI-powered features, advanced health sensors, and even medical-grade capabilities, all of which are edging smartwatches beyond fitness and into full-blown wellness tools.
The smartwatch market isn’t just cooling—it’s fragmenting. Legacy leaders are feeling the pressure from aggressive, fast-moving Chinese brands. Regional growth is no longer uniform. And consumer expectations are clearly shifting toward substance, integration, and long-term value. The race is still on—but the track has changed.
