Apple(US:AAPL) Counterpoint Research·2025-09-04 01:04Core Insights - The global smartwatch shipment volume has increased by 8% year-on-year, marking a return to growth after five consecutive quarters of decline [3][4]. - Huawei has surpassed Apple for the first time in smartwatch shipments, becoming the global leader in Q2 2025, driven by a 52% year-on-year growth [4][6]. - The Chinese market plays a crucial role in this recovery, with rising consumer demand and a focus on multifunctional, ecosystem-integrated devices [4][8]. Market Performance - Huawei's global shipment share reached a historic high of 20% in Q2 2025, benefiting from strong performance in the Chinese market and strategic expansion overseas [8]. - China has become the largest high-end smartwatch market globally, surpassing North America for the first time [8][11]. - The overall smartwatch market is expected to continue its recovery in 2025, with an estimated growth rate of around 7% [8][11]. Competitive Landscape - Apple has experienced a decline in global smartwatch shipments for seven consecutive quarters, losing its top position, but remains a leader in the high-end segment due to its iOS ecosystem and strong user loyalty [9][11]. - Xiaomi and Little Genius have seen significant growth in shipments, with Xiaomi excelling in the budget smartwatch market and Little Genius dominating the children's smartwatch segment [9]. - Samsung's shipments have decreased by 3%, reflecting a broader trend of consumer hesitation in purchasing, as many are waiting for new product releases expected in Q3 2025 [9][11]. Regional Insights - The strong performance of domestic brands and a loyal user base have propelled China to become the largest market for high-end smartwatches in Q2 2025 [11]. - The growth in the Chinese market is supported by affordable options, government subsidies, and deep integration with local application ecosystems [11]. - The global smartwatch market is entering a new innovation cycle, with health and AI becoming core differentiators for long-term competitive advantage [11].