In the first quarter of 2025, Apple Watch faced stiff competition in the booming global smartwatch market. New data from Canalys reveals a 13% year-over-year growth in wearable band shipments, totaling 46.6 million units. However, Apple’s performance was overshadowed by rising competitors focused on affordability and advanced health tracking.
Xiaomi Leads the Pack
Xiaomi surged to the top of the market with 8.7 million units shipped—marking a 44% increase from 2024. Its success is largely attributed to the popular Redmi Band 5 and integration of its custom HyperOS across devices. Xiaomi’s strategy to deliver value in price-sensitive regions paid off, giving it a clear edge in emerging markets.
Apple Maintains Premium Focus
Apple shipped 7.6 million Apple Watches, showing a modest 5% growth from the previous year. Analysts note this figure aligns with seasonal patterns, as it follows Apple’s typical September refresh schedule. Rather than introducing radical hardware upgrades, Apple is refining its ecosystem. The company emphasizes seamless pairing with iPhones and health data privacy. Yet, with a saturated user base, Apple’s future growth may depend on services like Fitness+.
Competitors Gain Momentum
Huawei ranked third with 7.1 million units shipped, up 36%, driven by the global rollout of the Huawei Health app. Samsung followed with a 74% jump in shipments, reaching 4.9 million, thanks to a dual-market approach. Garmin rounded out the top five with 1.8 million shipments and introduced a subscription service for health insights, signaling a pivot toward recurring revenue.
Ecosystem Is the New Battleground
As hardware innovation slows, brands are shifting focus to software ecosystems. Companies like Xiaomi and Huawei are building interconnected platforms combining wearables, smartphones, and health apps. Meanwhile, brands like Oura and Whoop embrace subscription models to drive long-term engagement.
Price, battery life, and health tracking remain top buying factors. However, integration, data security, and service ecosystems are becoming just as critical.
