Core Viewpoint - Apple Watch has experienced a decline in global shipments for two consecutive years, with a 19% drop in 2024 and a 10% drop in 2023, indicating a significant downturn in its market performance [3][5]. Group 1: Shipment Performance - According to CounterPoint's report, Apple Watch's global shipment volume has decreased for five consecutive quarters, with notable declines in all major markets except India [5]. - The report highlights that the decline in shipments is not limited to a single region, as even in the U.S., Apple Watch sales have been disappointing [5]. Group 2: Reasons for Decline - The stagnation in sensor technology development is identified as a fundamental reason for the decline in Apple Watch's attractiveness, as the industry has not seen significant advancements in new health monitoring features [10][14]. - Apple's product strategy has been criticized for focusing on minor updates and cosmetic changes rather than substantial improvements, leading to a lack of compelling reasons for consumers to upgrade [10][12]. Group 3: Competitive Landscape - The rise of domestic high-end smartwatch brands has intensified competition, as these brands have improved their hardware and design, challenging Apple Watch's market position [16][19]. - Domestic brands like Huawei and OPPO have developed advanced health monitoring systems and software algorithms that allow them to offer features that Apple Watch has not yet implemented, further eroding Apple's market share [20][22]. Group 4: Future of Wearable Devices - The increasing importance of wearable devices in the AI era is noted, as they serve as natural entry points for AI interaction due to their proximity to users and ability to collect rich contextual data [25]. - The future role of smartwatches is expected to evolve, potentially becoming containers for AI, allowing seamless interaction across various devices, which may prompt Apple to respond to the competitive pressure from domestic brands [26][28].