According to Counterpoint Research's "Global Smartwatch Shipment Tracker Q2 2025" report, Huawei's smartwatch shipments surpassed Apple (AAPL.US) for the first time in the quarter, successfully capturing the global number one position. Global smartwatch shipments increased 8% year-over-year in the quarter, marking the first recovery after five consecutive quarters of decline since Q1 2024, with the Chinese market playing a pivotal role in this quarter's growth. This recovery was primarily driven by sustained consumer demand rebound, particularly led by brands such as Huawei, Xiaomi-W (01810), and Little Genius in the Chinese market.
Senior analyst Anshika Jain commented on the market performance: "Huawei jumped to the top position in the global smartwatch market with a 52% year-over-year increase, representing the fastest growth among the top ten global brands. Leveraging its diverse product portfolio, strong domestic market momentum, and competitive advantages in the mid-to-high-end price segments, Huawei surpassed Apple for the first time to claim the global shipment leadership. The brand continues to offer smartwatch products that meet the needs of various consumer groups, with over three-quarters of its shipments currently concentrated in the Chinese market, and most products priced in the $100-$400 range. Additionally, Huawei is gradually expanding in Europe, Middle East & Africa, and Asia-Pacific regions to further broaden its global user base. Huawei's expanding smartphone user base in China, combined with its ecosystem integration strategy, serves as a key driver of its growth."
Global Smartwatch Shipment Market Share Q2 2024 vs Q2 2025
Meanwhile, Apple's global smartwatch shipments have declined for seven consecutive quarters, losing its position as the global market leader. However, leveraging the advantages of its iOS ecosystem and strong user loyalty, Apple continues to maintain its leading position in the premium smartwatch segment.
Among the top five manufacturers, both Xiaomi-W and Little Genius achieved significant shipment growth in the quarter. Xiaomi-W demonstrated outstanding performance in the basic smartwatch market through its cost-effective products and extensive market coverage, while Little Genius continues to dominate the children's smartwatch segment by relying on its differentiated features and strong brand recognition among young users and parents. Another major manufacturer, Samsung, saw shipments decline 3% year-over-year.
The weak performance of Apple and Samsung was also influenced by consumer wait-and-see sentiment, with some users postponing purchases to await next-generation devices expected to launch in Q3 2025.
Global Premium Smartwatch Shipment Market Share (by Region) Q2 2024 vs Q2 2025
When commenting on regional market trends, analyst Balbir Singh stated: "Supported by strong performance from domestic brands and a loyal user base, China became the world's largest premium smartwatch shipment market for the first time in Q2 2025. The robust development of the Chinese market is largely attributed to abundant affordable options, government policy subsidies, and deep integration with local application ecosystems—making smartwatches indispensable in daily scenarios such as payments and health management. Meanwhile, other major regions, particularly most brands affected by declining North American market shipments, further consolidated China's leading position in the premium smartwatch market."
Looking at the global market outlook, Jain pointed out: "We expect the smartwatch market to continue recovering in 2025, with annual growth projected to achieve steady growth of around 7%. This growth is primarily driven by functional upgrades in smartwatches, including deep application of AI technology and next-generation high-precision health sensors. Brands are covering all price segments from entry-level to flagship through differentiated pricing strategies, both attracting first-time buyers to try and driving upgrade replacement demand. Ecosystems such as HarmonyOS, Wear OS, and WatchOS are expected to further expand to support this diversification. By combining AI-driven insights with advanced sensors, smartwatches will provide more accurate health assessments, personalized recommendations, and lifestyle guidance, thereby further driving market growth."
Counterpoint Associate Director David Naranjo added when looking at overall market dynamics: "The decline of Apple and Samsung indicates that brand loyalty alone is no longer sufficient to maintain competitiveness—consumers now expect tangible value-added experiences, such as FDA-certified health data, AI-driven personalized experiences, and longer battery life. The second half of 2025 will be crucial for both brands: if Apple's next-generation Apple Watch and Samsung's Galaxy Watch can achieve significant functional breakthroughs, both still have the potential to regain growth momentum. However, Chinese brands are gaining the upper hand with their scale, cost-effectiveness, and ecosystem integration advantages, gradually emerging as global challengers. The market is entering a new innovation cycle, where health and AI will become the core of long-term differentiation advantages.