🔍 Summary:
The smartwatch market has seen its first decline, with a 7% drop in shipments in 2024 compared to the previous year, largely due to a decrease in Apple Watch sales, as reported by Counterpoint. Apple’s shipments fell by 19%, attributed to increased competition and less compelling upgrades in their latest models. The Apple Watch Series 10, despite being on sale at its lowest price, did not attract significant consumer interest, particularly in North America, due to the absence of anticipated models like the Ultra 3 and minimal new features.
Apple also faced setbacks with its health features, notably losing a patent dispute with Masimo over a blood oxygen sensor, leading to the removal of this feature from its watches. This has frustrated customers and dampened sales, as competitors like Huawei have capitalized on incorporating such health features into their devices, seeing a 35% increase in shipments.
Despite Apple Watch’s capabilities extending beyond health monitoring to functions akin to a mini smartphone, such as call handling and navigation, its health tracking features lag behind competitors like Whoop and Garmin. The Apple Watch does not offer comprehensive sleep or activity scoring, which are becoming increasingly important to users. Apple’s Vitals App provides some health data, but lacks the depth and engagement found in other devices that offer detailed behavioral insights and sleep health analysis.
To regain its edge, Apple may need to enhance its health monitoring features and provide more personalized, engaging user experiences similar to those offered by competitors, which could help drive more consistent use and customer loyalty.
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