Global smartwatch shipments fell 4% year-over-year in the second quarter of 2026, according to market intelligence from Counterpoint Research. The contraction marks the industry’s first quarterly downturn following twelve months of flat performance. Market analysts attribute the decline to waning consumer interest in entry-level smartwatches with limited biometric sensors, alongside lengthening replacement cycles among users awaiting major technological advancements in the premium segment.
Despite the broader contraction, Huawei secured the number one global position, capturing a record 22% market share backed by a 1% rise in shipments. The vendor’s performance was anchored in mainland China, which accounted for roughly 80% of its overall shipment volume. With domestic sales buoyed by the release of the Huawei Watch GT 7, the brand capitalized on sustained regional appetite for advanced fitness tracking and preventive health monitoring.
Apple claimed second place, holding a 20.1% market share while posting the fastest growth among the top five vendors with a 14% year-over-year surge. Apple’s regional recovery was driven by the late-2025 portfolio, with the Apple Watch Series 11 and Apple Watch SE 3 collectively generating more than 80% of total shipments.
Other leading manufacturers displayed mixed performance across the quarter:
- Imoo retained third place, slightly increasing its presence from 7.7% to 7.8% market share.
- Xiaomi experienced a sharp 38% decline in sales, dropping to fourth place as its market share contracted from 9.5% to 6.1%.
- Garmin finished fifth, recording an 11% shipment increase to reach a 5.6% market share powered by demand for high-end outdoor sports navigation.
Counterpoint forecasts modest industry momentum through the remainder of the year, projecting total 2026 shipment growth of just 1%. Over the longer term, the sector is expected to maintain a 3% compound annual growth rate (CAGR) through 2030, with market revival linked to edge AI processing, automated blood pressure monitoring, and non-invasive blood glucose detection.
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