Global smartwatch shipments declined by 4% year-over-year in the second quarter of 2026, marking the first market contraction in a year. The downturn was primarily attributed to an extended replacement cycle for existing devices and continued weakness within the basic smartwatch segment, according to data from market research firm Counterpoint Research(http://www.counterpointresearch.com/)
Consumers reportedly delayed upgrades of low-cost basic smartwatches due to limited monitoring capabilities. Simultaneously, users of premium smartwatches postponed purchases in anticipation of upcoming product launches, contributing to the longer replacement cycles observed across the market.
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Huawei Gains Dominance, Apple Shows Strong Growth
Despite the overall market decline, Huawei achieved a record 22% share of global smartwatch shipments in Q2 2026. This growth was largely propelled by the Chinese market, which accounted for approximately 80% of Huawei’s total global volume.
Principal Analyst Anshika Jain commented, “Huawei led the market shipments in Q2 2026, while Apple recorded the fastest YoY growth among the top five brands.” Apple’s performance was driven by the sustained adoption of its refreshed late-2025 lineup, with the Apple Watch Series 11 and Watch SE 3 collectively comprising over 80% of the company’s global shipments during the quarter. Apple reported growth across all regions.
China Maintains Leadership in Regional Shipments
Regionally, China maintained its position as the global leader in smartwatch shipments, reaching its highest-ever share of 38% in Q2 2026. The country experienced a 7% year-over-year shipment growth, closely behind North America. This expansion was influenced by strong consumer preference for local brands, notably Huawei and Imoo.
Apple also registered the fastest growth among the top five brands within China, signaling a recovery following a decline in the same quarter of 2025. Additionally, China’s consumer electronics subsidy program contributed to increased smartwatch sales in the market.
Modest Market Growth Projected Amid Technological Advances
The global smartwatch market is forecast to grow by only about 1% for the full year 2026. Research Director Mohit Agrawal noted, “Premium users are holding on to their watches longer and the basic segment continues to shrink.”
However, emerging technologies and advanced health features are expected to stimulate future market expansion. Innovations such as Edge AI integration in smartwatches, advancements in blood pressure tracking, and the pursuit of non-invasive blood glucose monitoring are anticipated to provide compelling incentives for consumer upgrades. These developments underpin a projected 3% Compound Annual Growth Rate (CAGR) for the market through 2030, as detailed in recent industry developments and analysis on platforms like TechnoSports (https://technosports.co.in/).
