Apple and Huawei Outperform Competitors in Smartwatch Market Amid Declining Sales

Apple's Smartwatch Growth Defies Market Trends

In a market where many brands are experiencing a downturn, Apple's smartwatch line is showing remarkable resilience and growth. According to Counterpoint Research, Apple Watch shipments surged by 21% in Q1 2026, which significantly boosted Apple's market share to 23%. In contrast, the overall smartwatch market only saw a modest 4% increase, highlighting Apple's strong performance amidst industry challenges.

Anshika Jain, a Principal Analyst at Counterpoint, attributes this growth to several key factors, including significant health-focused upgrades and the introduction of the budget-friendly Watch SE 3. The North American market played a pivotal role, accounting for over half of Apple's shipments. However, it's not just the U.S. driving Apple's success; China and Europe are rapidly closing the gap, indicating a broadening of Apple's appeal. Apple's continued innovation, particularly in health technology, positions it as a leader in the smartwatch market.

Compared to: Apple's Predecessor and Competitors

To understand the context of Apple's current success, it's essential to compare it with its predecessor and closest competitors. The Apple Watch SE 2, launched in 2023, had set the stage with a 15% market share, which the SE 3 has now surpassed. This growth is partly due to Apple's strategic pricing and feature enhancements that appeal to a broader audience.

In terms of competition, Samsung's Galaxy Watch series has historically been a strong contender. However, with the Galaxy Watch's market share dropping from 7% to 5% as reported, Apple has capitalized on Samsung's missteps. The Apple Watch Series 8 also competes directly with Huawei's Watch GT series, which has been gaining traction in the Chinese market but hasn't matched Apple's global reach.

How Huawei Maintains Its Position in a Shrinking Market

Huawei, another giant in the smartwatch market, is not resting on its laurels. Despite the overall industry contraction, Huawei's smartwatch shipments increased by 12%, securing a 17% market share, second only to Apple.

Huawei's strategy heavily leans on its dominance in the Chinese market, a region that remains crucial for its success. Although specific figures on its domestic market share aren't available, it's clear that Huawei's strong local presence is a buffer against global market pressures and geopolitical challenges that have impeded its smartphone business.

By focusing on local markets and delivering standout features in its wearables, Huawei continues to compete effectively with Apple. The global smartwatch market might be nearing saturation, but Huawei's strategic positioning ensures it remains a formidable player.

Real Daily-Use Scenario: Huawei vs. Apple

Consider a typical user scenario: a fitness enthusiast in Europe deciding between the Apple Watch Series 8 and Huawei Watch GT 4. Both offer robust health tracking features, but the Apple Watch integrates seamlessly with other Apple products, providing a cohesive ecosystem experience. The Huawei Watch GT 4, however, offers longer battery life and a more competitive price point. For a user heavily invested in the Apple ecosystem, the choice might lean towards Apple, whereas someone looking for cost-effective, high-performance wearables might opt for Huawei.

Samsung's Sharp Decline Raises Questions About Its Strategy

Samsung, traditionally a strong player in the smartwatch market, is encountering significant challenges. Counterpoint's data indicates that Galaxy Watch shipments fell by 28% year-on-year in Q1 2026, resulting in a market share decrease from 7% to a mere 5%. This decline is particularly troubling given the overall market growth.

The pending release of the Galaxy Watch 9 could potentially reverse this trend, but it underscores serious concerns about Samsung's current strategy. Reports from 9to5Google highlight that competitors like Xiaomi and Imoo are experiencing shipment increases, suggesting that Samsung's product development and marketing strategies may not be resonating as effectively with consumers.

What This Means for You: Consumer Perspective

For consumers, Samsung's situation is a cautionary tale about the importance of continuous innovation and market responsiveness. If you are considering a smartwatch purchase, Samsung's current trajectory might make you hesitant to invest in their ecosystem without assurances of future support and innovation. Meanwhile, Apple's and Huawei's stable growth could provide more confidence in their product longevity and ecosystem support.

Comparing Apple and Huawei's Resilience in Challenging Times

The divergent paths of Apple and Huawei offer insightful lessons in strategic market navigation. Apple leverages its innovation in health technology and robust brand presence to maintain its leadership. Huawei, on the other hand, focuses on its domestic market strength and premium feature offerings.

The disparity between these leaders and their competitors, as noted by Counterpoint, hinges on distinct supply chain strategies and pricing approaches. Apple has successfully managed rising costs associated with RAM shortages, while Huawei has maximized its market dominance in China. This strategic differentiation is why both companies are thriving while others struggle.

What's Still Unclear:

Despite the strong performance of Apple and Huawei, several uncertainties remain. Can Apple sustain its momentum as average selling prices rise? Will Huawei's domestic success translate into international victories amid geopolitical tensions? Both companies face the challenge of adapting to these uncertainties and shifting consumer preferences.

Implications of Rising Smartwatch Prices for Consumers

The increase in average selling prices (ASP) of smartwatches, which rose by 6% year-on-year in Q1 2026, is a trend worth monitoring. This reflects a shift towards premium devices equipped with advanced features. According to 9to5Mac, this trend is driven by improved sensors and enhanced health monitoring capabilities, which are particularly appealing in markets like India.

However, the rising prices raise an important question: Will budget-conscious consumers be left behind? As prices increase, the accessibility of smartwatches to the average consumer may diminish. Both Apple and Huawei need to consider this balance between innovation and affordability as they develop future products.

Closing Take

The contrasting fortunes of Apple and Huawei amid a declining market underscore the critical role of strategic positioning and innovation. Understanding how rising prices and shifting consumer demands affect the market is crucial for both companies and consumers. For consumers, these dynamics will be instrumental in shaping purchasing decisions and the future technology landscape. The ability of Apple and Huawei to continue adapting to these changes will determine their ongoing success and influence in the tech world.

Sources cross-referenced

This story was synthesised from reporting by 4 outlets:

1. 9to5Mac 2. 9to5Mac 3. 9to5Google 4. GSMArena