Apple drives smartwatch rebound as Samsung slumps in health-led upgrade cycle
Apple led the global smartwatch market back to growth in Q1 2026, with shipments up 21%, while Samsung fell 28% as demand shifted towards health-focused and AI-enabled wearables.
Apple drove the global smartwatch market back into growth in the first quarter of 2026, with shipments rising 21% year-on-year as consumers upgraded to more advanced health-tracking wearables, while rival Samsung suffered a steep 28% decline, according to Counterpoint Research.
Global smartwatch shipments rose 4% year-on-year in the January-March quarter, supported by stronger Apple Watch demand, a recovery in China and growing consumer interest in premium devices with advanced health and AI features.
Apple leads as health upgrades attract buyers
Apple captured the largest global smartwatch shipment share at 23% in Q1 2026, making it the strongest performer among the top brands. Its shipment growth outpaced the broader market, helped by a refreshed product line-up, the Apple Watch SE 3 and deeper health-related features.
North America still accounted for more than half of Apple’s smartwatch shipments, but China and Europe recorded the brand’s fastest regional growth during the quarter, according to Counterpoint.
The results underline Apple’s continued advantage in the wearables market, where its ecosystem, health features and premium positioning have helped it maintain leadership even as competition intensifies.
Samsung loses share ahead of next refresh cycle
Samsung had a difficult quarter, with smartwatch shipments falling 28% year-on-year. Its global market share dropped by two percentage points to 5%, leaving it well behind Apple, Huawei and Xiaomi.
The sharp decline suggests Samsung may have been caught in a weaker product cycle, with consumers waiting for its next generation of Galaxy Watch devices. In a market increasingly driven by advanced sensors, AI capabilities and health monitoring, timing and product refreshes are becoming more important to shipment performance.
Huawei and Xiaomi benefit from China recovery
Huawei remained the world’s second-largest smartwatch brand, with shipments rising 12% and its global share reaching 17%. Xiaomi ranked third, with shipments up 9% and a 10% global share, while Imoo recorded modest growth of 2% and retained a 7% share.
China played a major role in the market’s recovery. Smartwatch shipments in China grew 15% year-on-year in Q1 2026, led by Huawei’s strong domestic performance and supported by government electronics subsidies that encouraged consumer upgrades. Huawei accounted for about 40% of smartwatch shipments in China during the quarter.
Huawei’s momentum was also supported by demand for wellness features such as sleep tracking, emotional wellbeing monitoring and arrhythmia analysis, as well as its wider device ecosystem and presence across multiple price tiers.
Buyers pay more for smarter health features
The smartwatch market is also showing signs of premiumisation. Counterpoint said the average selling price of smartwatches rose 6% year-on-year in Q1 2026, driven by improved sensors, AI capabilities and stronger health-monitoring functions.
The shift reflects consumers moving beyond basic fitness trackers towards more advanced smartwatches that can support deeper health insights, including features linked to sleep, heart health and other wellness metrics.
Emerging markets such as India are also contributing to this shift, as more users upgrade from entry-level wearables to more capable models.
Market outlook remains steady despite component pressures
Counterpoint expects the smartwatch market to maintain steady growth through 2030, with premium, health-centric devices leading demand. The firm forecasts a compound annual growth rate of about 3% through 2030.
While memory shortages and macroeconomic pressures are expected to weigh on consumer electronics in 2026, the impact on smartwatches is likely to be less severe than on smartphones and PCs because smartwatches generally carry lower bill-of-materials exposure and stronger margins in the premium segment.
The Q1 results point to a market that is no longer growing simply on basic step-counting or notification features. Instead, the next phase of smartwatch growth is being shaped by health monitoring, AI, ecosystem loyalty and consumers’ willingness to pay more for devices that promise deeper personal insights.
Source: Counterpoint Research
