The growth of the global smartwatch market has stalled for the first time in a year. It is due to the slump of budget models and the lengthening replacement cycles of premium models.
According to Counterpoint Research on the 8th, global smartwatch shipments in the second quarter of this year fell 4% from a year earlier.
By brand, Huawei kept the top spot in shipments, and Apple posted the highest year-over-year growth rate among the top five brands.
Huawei's shipments rose 1% from a year earlier. Its share inched up from 20.8% to 21.8%. China drove Huawei's growth, accounting for about 80% of Huawei's global shipments.
Apple recorded the highest growth rate among the top five brands at 14%. Its share jumped from 17.0% to 20.1%, narrowing the gap with Huawei. Apple was found to have increased shipments across all regions as the new lineup released late last year continued to be adopted. Apple Watch Series 11 and SE3 accounted for more than 80% of Apple's total global shipments.
Xiaomi, by contrast, saw shipments plunge 38%, and its share slid from 9.5% to 6.1%. It is seen that its budget-focused lineup took a direct hit from the market contraction.
By region, China also ranked No. 1 in global smartwatch shipments in the second quarter of this year. Its share hit a record high of 38%. China's year-over-year shipment growth rate was 7%, the second highest after North America. It is analyzed that China's consumer goods subsidies helped boost smartwatch sales.
Research Director Mohit Agrawal said, "With premium users keeping their devices longer and the budget institutional sector continuing to shrink, we expect shipment growth in 2026 to stay around 1%," but added, "Competition in edge artificial intelligence (AI), blood pressure measurement, and noninvasive blood glucose monitoring in smartwatches will give consumers new upgrade incentives, and the smartwatch market will post a 3% compound annual growth rate (CAGR) through 2030."