Core Viewpoint - Apple Watch shipments declined by 19% in 2024, marking the second consecutive year of decline, primarily due to the absence of new SE models [1][5]. Group 1: Shipment Performance - In 2024, Apple Watch shipments fell to 19 million units, with all regions except India experiencing a decline, particularly in North America, which accounts for over half of Apple Watch shipments [5]. - The decline in market share for Apple in the high-end smartwatch segment was 8 percentage points year-on-year [5]. - The fourth quarter of 2024 marked the fifth consecutive quarter of declining shipments for Apple smartwatches, while competitors in the high-end smartwatch market saw growth during the same period [5]. Group 2: Contributing Factors - The limited upgrade of the Series 10, intensified competition, absence of new Ultra models, and legal disputes collectively hindered growth [6]. - The last update for the SE series was in Q3 2022, and Apple is attempting to change the SE series' aluminum base to plastic, causing delays in the new SE model release [7]. Group 3: Future Outlook - To achieve a market rebound in 2025 and maintain market share, Apple needs to focus on introducing new features, launching new SE and Ultra series models, and potential design upgrades [7].

Core Insights - North America remains the largest market for Apple smartwatches, contributing over half of the total shipments, but it has become a key factor dragging down global performance in 2024 [2] - Apple has seen an 8% year-on-year decline in market share in the high-end smartwatch segment priced over $300, with fourth-quarter shipments declining for the fifth consecutive quarter [2] - In contrast, Samsung's Galaxy Watch Ultra series is gaining traction among high-end users due to its titanium body and health monitoring features, while Huawei's Watch GT series is capturing the mid-range market with its "long battery life + cost-effectiveness" strategy [2] Product Strategy Issues - Counterpoint attributes Apple's decline to two major product strategy missteps: the limited upgrade of the Watch Series 10 has resulted in insufficient consumer motivation to upgrade [2] - The absence of the flagship Watch Ultra 3 and the entry-level Watch SE in the 2024 product lineup has further exacerbated the situation [2] - The previous generation of Watch SE was launched in Q3 2022, and the anticipated 2024 version has faced delays due to controversial design changes from aluminum to plastic, leading to a rare situation where Apple released new products but experienced a year-on-year decline in shipments during the traditional new product launch season [2]