Things are not looking great for Apple’s smartwatch line. Market research company Counterpoint has released its latest report on Apple Watch performance, and it found that Apple Watch shipments, after dropping by 10% in 2023, fell sharply by almost 20% year-over-year in 2024.

The drop in shipments is attributed to a variety of factors unique to Apple, since its competitors like Huawei and Xiaomi saw growth during the same period, Counterpoint said. Issues include a lack of upgrades in the latest Apple Watch models and an overall lack of interest in the new Apple Watch 10 ($399 at Apple) from the North American market, which seems to be growing more price-conscious. 

The current research does not include the impact of 2025, which have been a confusing ride for Apple so far and could lead to higher Apple Watch prices, availability issues for Americans or manufacturing problems for Apple products due to the ongoing tariffs situation. Keep track of the latest impact here with CNET’s tariff tracker.

When we reached out to Counterpoint analysts for more information on how Apple Watch sales may look this year, Research Director Jeff Fieldhack got back to CNET with important framing for these trends. “Most Apple watches entering the US come from Vietnam — so we are watching the Vietnam tariff situation,” he said. “If there are no exemptions or trade deals, we expect US consumers to pay for the increased costs of tariffs. We do not believe Apple or any other companies in the value chain to end consumers will absorb the cost of tariffs.”

However, two interesting smartwatch areas are bucking the trend and seeing notable growth: India, which was one of the only regions to see growth in Apple Watch shipments; and kid’s smartwatches, which was the only sector to see global growth in the 2024 smartwatch industry.

To return to year-over-year growth, Counterpoint suggests that Apple focus on releasing new models for its Watch SE and Watch Ultra lines, as well as focusing on substantial design upgrades for its new watches. 

Counterpoint and Apple didn’t immediately respond to requests for comment.