The global wearables market has reached a significant milestone. For the first time, Huawei has surpassed Apple in worldwide smartwatch shipments, signaling a major shift in consumer preferences and competitive dynamics. This change, detailed in a new report from Counterpoint Research, ends a prolonged period of stagnation for the industry.
After five consecutive quarters of decline, the global smartwatch market experienced a welcome rebound in Q2 2025, growing 8% year-over-year. Leading this charge was Huawei, whose strategic focus and diverse offerings have propelled it to the forefront.
The Drivers Behind Huawei’s Remarkable Surge
Huawei’s impressive 52% year-over-year growth is no accident. It is the result of a calculated strategy built on three key pillars:
- Dominance in Home Turf: The vast majority of Huawei’s shipments (over 75%) were within China, demonstrating its powerful brand presence and deep understanding of local consumer needs.
- A Product for Every Pocket: Unlike competitors focused primarily on the premium segment, Huawei successfully caters to a wide range of consumers. Its portfolio includes affordable entry-level models priced around $100 and high-end devices exceeding $400, making smartwatch technology accessible to a broader audience.
- The Ecosystem Advantage: Huawei’s strength lies in its deeply integrated ecosystem. Its watches work seamlessly with other Huawei devices, from smartphones to laptops, creating a sticky, convenient user experience that fosters brand loyalty.
This successful formula has also fueled Huawei’s expansion beyond China, with notable growth in Europe, the Middle East, and the Asia-Pacific region.
Apple’s Challenges and the Broader Market Landscape
In contrast, Apple saw its shipments decline by 3%, marking a seventh straight quarter of contraction. While Apple remains a powerhouse in the premium segment and retains a fiercely loyal iOS user base, it faces mounting challenges.
The gap in core innovation—such as health tracking, battery life, and design—between Apple and its competitors is narrowing. Consumers are increasingly finding comparable features in more affordable devices, making it harder for Apple to justify its premium position on brand reputation alone.
The quarterly report also highlighted movements from other key players:
- Xiaomi grew shipments by 38%, cementing its position as a leader in the value-driven, affordable smartwatch segment.
- moo saw a 21% increase, maintaining its dominance in the specialized children’s smartwatch niche.
- Samsung experienced a 3% dip, as its latest Galaxy Watch 7 model failed to generate the anticipated consumer demand.
Looking Ahead: A Cautiously Optimistic Forecast
The global smartwatch market is projected to grow by approximately 3% for the full year, with demand largely driven by the Chinese market. Today’s consumers, especially in China, are increasingly seeking versatile devices that are more than just timepieces; they want comprehensive tools that integrate health and fitness tracking, navigation, and contactless payments into a single device on their wrist.
This shift underscores a broader trend: the future of wearables belongs to brands that can successfully blend hardware innovation with ecosystem integration and strategic pricing. Huawei’s rise to the top is a clear testament to this new market reality.
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