Apple has grown increasingly tight-lipped about the performance of its Apple Watch, opting to highlight technical specifications rather than sales figures. While the company occasionally mentions record numbers of new users, concrete data remains scarce, forcing analysts to rely on third-party estimates.
A Once-Dominant Wearable Losing Momentum?
In 2016, reports suggested the Apple Watch had surpassed Rolex in popularity, a claim later supported by Swiss watch industry data. However, context is key—Switzerland exports only around six million mechanical watches annually, a fraction of what a flagship Apple product would typically sell.
Apple’s decision to bundle wearables, home products, and accessories into a single sales category further obscures the Apple Watch’s true performance. Yet, historical trends suggest it dominates this segment, given its premium pricing and strong brand appeal. HomePods and AirPods Max remain niche, while standard AirPods, though popular, don’t match the Apple Watch’s revenue impact.
A Concerning Sales Trend
Recent financial reports reveal a worrying pattern: wearables sales, which historically spike in the December quarter, have declined for two consecutive years. Despite the introduction of the high-end Apple Watch Ultra in 2022, the segment’s revenue dropped by 11% year-over-year in the most recent holiday quarter—following an 8% decline the previous year.
What’s Behind the Slump?
Two key factors may explain the downturn. First, the pandemic-driven health monitoring boom—which boosted demand for features like hand-wash reminders and blood-oxygen tracking—has faded. With COVID-19 no longer a global emergency, these selling points have lost urgency.
Second, recent Apple Watch updates have lacked groundbreaking innovations. Crash detection, iterative chip upgrades, and minor software tweaks haven’t been compelling enough to drive mass upgrades. The absence of the blood-oxygen sensor in newer models (due to legal disputes) further weakens the value proposition.
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