In a surprising shift within the wearables industry, Huawei has recently outperformed Apple in global shipments of wrist-worn devices, seizing the top spot in a sector previously dominated by the Cupertino-based giant. This development marks a notable shift in consumer preferences and market dynamics, according to the latest data from the International Data Corporation (IDC).
Huawei’s Strategic Triumph
During the first three quarters of 2024, the total number of wrist-worn devices shipped worldwide slightly decreased by about 1% year-over-year, totaling 139.0 million units. Despite the overall slowdown, Huawei managed a significant leap in shipments, totaling 23.6 million units—a staggering 44.3% increase from the previous year. This surge has propelled Huawei to the forefront of the wearables market, surpassing Apple in terms of total wrist-worn shipments.
The smartwatch segment, generally seeing a downturn with a 3.8% drop in global shipments, contrasts sharply with the robust 12.7% growth in the fitness band sector, where Huawei and other brands have found substantial success. Huawei’s updated product lineup, including the Watch GT 5, GT 5 Pro, and Watch D2, has been well-received across diverse markets, from Asia-Pacific to the Middle East and Africa, demonstrating the company’s ability to adapt and innovate.
Apple’s Narrow Focus Costs Its Lead
While Apple remains the leader in pure smartwatch shipments and briefly reclaimed the top spot during the third quarter with its new Apple Watch Series 10, its overall market share suffered due to its absence from the low-cost fitness band segment. This gap has allowed Huawei and others to capitalize on a broader market base, appealing to entry-level consumers who are increasingly prioritizing value.
The Expanding Market Landscape
Other major players like Samsung and Xiaomi have also adjusted their strategies to cater to a wider range of consumers. Samsung, for example, has continued to attract customers at all price points with its Galaxy Watch 7 series and the more affordable Galaxy Watch FE and Galaxy Fit3. This approach resulted in a 24.3% increase in shipments, securing Samsung a strong fourth-place finish.
Similarly, Xiaomi and BBK (the parent company of OPPO, OnePlus, and Vivo) have seen significant growth, with increases of 26.5% and 25.9% respectively, driven by demand in emerging markets for affordable, feature-rich wearables.
A Glimpse into Future Trends
While the slight decline in overall shipments may seem discouraging, it serves as a catalyst for innovation within the wearables market. Companies are now challenged to think beyond traditional designs and functionalities, fostering a competitive environment ripe for innovation. China, leading global growth with a 20.1% increase in shipments, exemplifies this trend, significantly outpacing other regions.
