A multi-year downturn has impacted Apple Watch sales, with IDC reporting a steady year-over-year decrease for the past three years. The device’s unit shipments have fallen sharply, from 43 million in 2022 to 34 million in 2024, and its market share has eroded to 22.5%. This decline, coupled with gains by competitors, suggests potential headwinds for Apple’s wearable strategy. The Q4 2024 revenue drop in the “Wearables, Home and Accessories” segment reinforces these concerns.
Henry Chandonnet for Fast Company:
Apple Watch sales have fallen far from their 2022 peak. While some analysts remain optimistic — [Jitesh Ubrani, a research manager at IDC], expects Apple will regain modest growth in 2025 — the numbers are still well below pandemic highs. Part of the drop, experts say, comes down to durability.
“A lot of people bought a new smartwatch or replacement smartwatch during the pandemic,” says Ben Hatton, analyst of connected devices for CCS. “Those devices are yet to reach the point where they are beginning to be replaced. So there’s that longevity of device, especially for the top-end devices, that does hamper growth.”
Unlike the iPhone, which users often upgrade for new features, the Apple Watch hasn’t changed dramatically in recent years. Ubrani notes that the device’s health and fitness sensors have remained largely consistent across generations. “You’re not getting a whole new experience, apart from maybe a shiny new case,” he says.
That could soon change. According to Bloomberg, Apple is currently testing watches with added cameras and Apple Intelligence.
MacDailyNews Take: Apple Watch sales will be just fine, waiting to be spurred by new features like blood pressure monitoring (2026?), satellite connectivity (coming first in Apple Watch Ultra 3 this year), and, the holy grail, non-invasive blood glucose monitoring (years away).
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