Smartwatch Market Rebound and Huawei’s Rise
The global smartwatch market is showing signs of a strong recovery. After five consecutive quarters of decline, 2025 saw a 4% increase in shipments according to Counterpoint Research. This resurgence is largely fueled by growth in China, which has overtaken North America as the world’s largest market for advanced smartwatches.
Leading this charge is Huawei, which surpassed Apple in global smartwatch shipments for the second quarter of 2025. Huawei’s market share reached 21%, a record high, driven by robust sales within China and strategic expansion into other regions. Apple, while still a major player, saw a 3% decline in shipments and now holds a 17% market share.
Apple’s Growth Driven by New Models
Despite Huawei’s overall lead, Apple experienced a positive shift in 2025, posting an 8% year-over-year increase in shipments – the first growth since 2022. This was attributed to the launch of the Series 11, Ultra 3, and SE 3 models, catering to a wider range of consumers and price points.
New features in the Ultra 3, such as 5G Redcap support, hypertension notification, and satellite connectivity, were key drivers for upgrades, particularly among users who had delayed purchases anticipating these advancements. Cellular-connected smartwatch shipments also increased by 6% year-over-year.
The Role of China and Domestic Brands
China’s growing demand for smartwatches, fueled by increasing health consciousness and the integration of AI and IoT technologies, is a critical factor in this market shift. Domestic brands like Huawei, Xiaomi (up 18%), and Imoo (up 9%) are capitalizing on this trend. Xiaomi ranks third with a 9% market share, and Imoo, specializing in kids’ smartwatches, holds 7%.
The average selling price of smartwatches also rose by 5% in 2025, indicating a “premiumization trajectory” within the market. Devices priced at $200 or less, however, saw a 9% decline in shipments.
Market Share Shifts and Future Outlook
Looking at global market share, Apple increased its share to 23% in 2025, extending its lead. Huawei followed with a significant 4-point increase to 17%, while Xiaomi gained 1 point to reach 9%. Samsung experienced a 2-point decline to 7%, tying with Imoo, which gained 1 point.
The competitive landscape suggests that innovation in health features, connectivity, and ecosystem integration will be crucial for future success. The continued growth of the Chinese market will also be a key determinant of overall industry performance.
FAQ: Smartwatches
Q: Which brand currently leads the smartwatch market?
A: Huawei surpassed Apple to develop into the leading smartwatch supplier globally in Q2 2025.
Q: What drove Apple’s recent growth in smartwatch shipments?
A: The launch of the Apple Watch Series 11, Ultra 3, and SE 3, along with new features like 5G Redcap and hypertension notification, contributed to Apple’s 8% year-over-year growth.
Q: Is the smartwatch market growing?
A: Yes, the global smartwatch market saw a 4% increase in shipments in 2025, signaling a rebound after a period of decline.
Q: What is driving growth in the smartwatch market?
A: Growth is largely driven by increasing demand in China, advancements in health and connectivity features, and the expansion of domestic brands.
