Apple Watch is one of the most popular smartwatches on the market. But it is harder than before to remain in the top spot as other manufacturers have started flexing their muscles.
According to a new report from the analytics firm Canalys, Apple Watch claimed the second spot among the top wearable band vendors in Q1 2025. The global wearable market saw a 13% year-on-year growth in Q1 2025, reaching a total shipment count of 46.6 million units.
Xiaomi's strong Redmi Band 5 sales helped it claim the top spot. The company increased its shipments from 6.1 million units (Q1 2024) to 8.7 million units (Q1 2025), recording an annual growth of 44% and the highest market share of 19%. Apple Watch recorded a 5% annual growth and 16% market share after increasing its shipments from 7.2 million to 7.6 million.
According to the report, this is the first time since 2021 that the Chinese tech giant has shipped the most wearable bands. One of its strengths is that Xiaomi invested in design refreshes, improved HyperOS integration, and advanced features for its Mi Band and Redmi Watch Series, bringing them down to lower price segments.
Apple had a conservative first quarter and is "expected to regain momentum in the second half of the year with a big portfolio update," the firm said. The year 2025 marks ten years since the original Apple Watch arrived.
Previous reports also suggest that Apple Watch has struggled to keep up with its shipment numbers in recent quarters. Several factors, including the lack of Apple Watch Ultra 3 and Apple Watch SE and fewer upgrades to its 10th-generation Apple Watch, are thought to be why consumers are shying away from making new purchases.
Canalys surveyed European consumers and found that price, battery life, and health-tracking features are the top three factors most people consider when buying a wearable. On the other hand, factors such as the operating system, charging time, and sports features aren't that important.
The firm noted that the device makers should balance "new features and the essential core comparative aspects to capture consumer demand." Moreover, the wearable market is shifting towards ecosystem-driven profits as hardware-led profitability is under strain. Vendors are trying to boost recurring revenue and user retention by focusing on platform and service development.
"Competition in the wearable band market will increasingly center on ecosystem strength and service depth, rather than hardware alone," the report said. "Core use cases, such as health tracking and fitness coaching, will continue to improve, making seamless device integration and subscription-based models vital to encourage user engagement and drive sustainable revenue."
Wearable brands such as Oura, Whoop, and Garmin are focusing on prioritizing services and relying on subscriptions to increase user value. In China, Xiaomi is using its broad device portfolio and HyperOS to deepen device integration and user engagement.
Meanwhile, Apple has been sailing on the ecosystem boat for years now with seamless iPhone pairing and is known for the stickiness of its ecosystem. The company is expected to make a comeback this year with new devices, "leaning on its mature and tightly integrated health-focused ecosystem."
Source and images: Canalys
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