Apple Watch sales are enduring a years-long backslide.
While Apple first launched its watch in 2015, sales didn’t spike until the pandemic, when consumers were highly focused on their health. But competitors quickly caught up, with fitness-focused companies like Garmin integrating more smart technology. Meanwhile, Apple stumbled in adding compelling new features—getting into some legal spats along the way.
For the past three years, Apple Watch sales have declined year-over-year, according to research firm IDC. In 2022, Apple sold 43 million units; by 2024, that number dropped to 34 million. The Apple Watch also lost market share, falling from 29.6% to 22.5%, while high-end competitor Garmin and budget alternatives like Huawei and Xiaomi gained ground. And although Apple doesn’t break out revenue by individual product, its “Wearables, Home and Accessories” segment was the only one to decline year-over-year in the fourth quarter of 2024.
“Apple is in a weird spot,” says Jitesh Ubrani, a research manager at IDC studying wearables. “They make great stuff but, at least on the watch side, things are a little bit iterative.”
Where did the Apple Watch upgraders go?
Apple Watch sales have fallen far from their 2022 peak. While some analysts remain optimistic—Ubrani 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. (Apple did not respond to a request for comment.)
That could soon change. According to Bloomberg, Apple is currently testing watches with added cameras and Apple Intelligence. Ubrani says these updates could appeal to Apple loyalists—but they’re already standard features among competitors.
“If we’re talking AI, I think Apple is behind, and visual intelligence would be a part of that,” he says. “In terms of adding cameras, they wouldn’t be the first one.”
Who needs an Apple Watch these days?
Apple isn’t the only company facing headwinds; the entire smartwatch industry has seen declining sales over the past three years, per IDC. But Apple’s competitors have weathered the downturn more gracefully. In 2023, when Apple Watch sales fell 15.8%, Google’s declined just 4.3%. And while both are expected to return to growth in 2025, Google’s projected 9.4% gain far outpaces Apple’s 4.9%.
Even in a shrinking market, Garmin is gaining ground. Though its share remains modest at about 5%, the company sold nearly two million more watches in 2024 than the previous year.
“You’ve got a group of consumers that are looking to buy the best, top of the range fitness trackers,” Hatton says. “They may have gone into them through the Apple Watch or the Samsung Watch, but increasingly, they’re realizing that what they want it for is the pure fitness element. Garmin is probably best positioned to serve that demand.”
The wearables category has also diversified. Watches once dominated the space, but now consumers can choose from smart rings that track sleep, headbands that boost focus, and AI-powered sunglasses. While these devices are still niche, Hatton says their rapid growth poses a longer-term threat. Apple sold an estimated 40 million watches last year; by contrast, only about 2 million smart rings were sold across all providers. “If they continue to grow very quickly, then they may start to become a real challenger to watches,” he contends.
And some consumers are simply over it. Maybe they grew tired of the endless notifications. Maybe they were shamed for wearing an Apple Watch at their wedding. Maybe they just missed the feel of a classic timepiece.
“There’s been a resurgence of traditional watches,” Ubrani says. “People like the idea of having something that’s a little less mass produced, something that’s away from the mainstream.”
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