Apple Watch Sales Decline Amidst Anticipation for New Models

Recent reports indicate a significant decline in Apple Watch sales, with a drop of 19% in shipments for the year 2024 compared to 2023, marking the second consecutive year of decreased demand. This decline is attributed to a lack of innovative features in the latest models, particularly the Apple Watch Series 10, which was launched in September 2024.

The Series 10 introduced a larger display and a slimmer design; however, it offered minimal new functionalities, with the notable exception of a sleep apnea tracking feature that was also made available through software updates for earlier models. Analysts suggest that the limited upgrades have failed to entice consumers, leading to a weakened market position for the company.

In addition, the Apple Watch Ultra 2 saw only a new color option introduced, with no other enhancements. The absence of significant updates, along with the lack of a refreshed entry-level SE model, has further contributed to the downturn in sales. The last SE model was released in the third quarter of 2022, and despite rumors, no new plastic models have emerged to attract budget-conscious consumers.

Analysts note that Apple must introduce new models and substantial upgrades to revitalize interest in its smartwatch offerings. The competition in the smartwatch market is intensifying, and the previously available blood oxygen monitoring feature remains disabled in the US, potentially impacting sales negatively. Furthermore, the market share for the premium Apple Watch Ultra has decreased from 10% to 8% in the fourth quarter of 2024.

Despite these challenges, Apple continues to dominate the advanced smartwatch segment. However, overall sales figures have already seen a 10% decline in 2023. Expectations for future models, such as the Apple Watch Ultra 3 and Series 11, include enhancements like improved connectivity features, potentially incorporating 5G and satellite capabilities, as well as the long-anticipated blood pressure monitoring functionality, although its release may face further delays.