Apple Watch Sales Continue to Decrease, Even with New Model Introduction

Apple Watch deliveries have been consistently decreasing over the last two years, as per recent data from Counterpoint Research. The company’s latest analysis, published on May 8, draws insights from its Global Smartwatch Shipment Tracker and reveals a worrying scenario for Apple’s wearable segment.

In 2024, Apple Watch deliveries fell by 19% in comparison to the prior year. This follows a 10% decrease in 2023, indicating a persistent downward trajectory. The decline was observed in most worldwide markets, with the exception of India. Significantly, North America—Apple’s primary market for smartwatches, representing over half of all shipments—experienced notably steep drops.

What is particularly concerning for Apple is that this decline occurred even after the introduction of the Apple Watch Series 10 in September 2024. Counterpoint noted that this signifies the first instance where Apple faced a year-over-year reduction during a quarter that included the launch of a new smartwatch model.

So, what could be the reason for the decline?

Counterpoint indicates that the problem does not lie in pricing or product quality, but rather in insufficient enticing upgrades for consumers. Specifically, Apple did not unveil refreshed versions of its budget-friendly SE model or its premium Ultra model alongside the Series 10 last year.

The Apple Watch Ultra, which debuted in late 2023, remains a specialized product, accounting for less than 10% of total Apple Watch sales because of its elevated price point. In the meantime, the SE model has not received an update since late 2022. For reference, the Ultra Watch 2 is priced at $769, the Series 10 at $399, and the SE at $249—though the SE is frequently available for under $200 during promotional events.

In today’s tough economic landscape, merely rolling out new models may not be a guaranteed solution. However, providing an updated budget-friendly choice like the SE could potentially enhance sales. Fortunately for Apple, Bloomberg’s Mark Gurman has indicated that refreshed versions of both the SE and Ultra models are anticipated to launch later this year.

Only time will reveal if these forthcoming products can turn around the declining trend.