CHART: Apple Loses Momentum as the Global Wearable Market Heats Up

• The global wearable market grew 3% YoY in Q3 2024, reaching 52.9 million units
• Apple’s shipments declined 3.6% year-on-year, slipping to 16% market share to tie Xiaomi
• Of the three categories, basic bands returned to growth (7%), basic watches grew slightly (3%), but smartwatch shipments stagnated (0.1%).

The wearable band market is heating back up, growing 3% year-on-year in Q3 2024 to reach 52.9 million units, according to Canalys research. However, the dominant player, Apple is losing steam.

The tech giant's shipments fell 3.6% to 8.5 million units, reducing its market share to 16.1% to tie with Xiaomi. While it remains a leader in shipment value, Apple’s position feels increasingly vulnerable as rivals Xiaomi and Huawei surged ahead with double-digit growth. Yet, Apple still leads in terms of shipment value.

Meanwhile, the growth in the quarter reflects gains across all categories except the smartwatch category, which stagnated—basic bands (grew 7% YoY to 10.4 million units), basic watches (grew 3% to 23.9 million units), and smartwatches (grew marginally by 0.1% to 18.5 million units).

Xiaomi, in particular, had a stellar quarter, shipping 8.5 million units—its highest since 2020—thanks to the Mi Band 9 and Redmi Watch 5 series. Offering a mix of affordable and premium options, Xiaomi grew 37.3% year-on-year by appealing to first-time buyers in emerging markets. However, this focus on affordability has had a tradeoff—Xiaomi’s average selling price (ASP) hit its lowest point since Q1 2021

Huawei also saw exceptional growth, climbing 38.5% to secure 13.5% of the market, while Samsung expanded its footprint with a 24.3% increase, driven by the Galaxy Fit3.

Emerging markets like Latin America and EMEA fueled much of this growth, with affordable, feature-packed wearables proving irresistible to new consumers.

Meanwhile, North America struggled. “Emerging markets are driving demand, while mature regions like North America lack features compelling enough to prompt upgrades,” the Canalys report noted.

With emerging markets fueling growth and brands like Xiaomi and Huawei closing the gap, Apple’s dominance in wearables is under increasing pressure. Vendors now face the challenge of balancing affordability with innovation to capture consumer interest and stay competitive.