Global shipments of the Apple Watch have fallen sharply for the second consecutive year, raising concerns about the company’s future in the increasingly competitive premium smartwatch market. According to a recent industry report, Apple saw a 19% year-over-year decline in shipments for 2024—a troubling development for a brand that once dominated the wearable tech landscape.
Initially met with skepticism, the Apple Watch found its footing by emphasizing health and fitness features, quickly rising to market leadership. However, as of May 7, 2025, that dominance appears to be waning. Analysts attribute the drop largely to a lack of compelling upgrades in recent models, leaving many users with little reason to replace their existing devices.
Meanwhile, rival smartwatch brands continue to grow, offering innovative features and gaining traction, particularly in key markets like North America—a region critical to Apple’s success. Experts warn that without a significant refresh of its product lineup, including updates to the Apple Watch SE and Ultra models, Apple risks ceding valuable market share to competitors.
Legal challenges have also reportedly limited certain product capabilities, further complicating Apple’s efforts to stay ahead in the category.
The current downturn marks a pivotal moment for Apple. As consumer expectations evolve, the company must respond with bold innovation in design and functionality to reassert its relevance and maintain its loyal customer base in the global smartwatch arena.
