Apple continues to hold the top spot in both the global smartwatch and true wireless stereo (TWS) earbud markets, despite growing competition from Chinese brands. While Apple’s dominance is intact, its lead is narrowing, especially in the smartwatch segment where Huawei is gaining ground.
Apple’s AirPods remain the best-selling TWS earphones worldwide, with a market share of approximately 21%, a marginal decline of 0.4% compared to last year. Despite the drop, Apple still leads by a wide margin, with Huawei trailing at 8%. No other brand crosses the 5% mark.
The upcoming release of AirPods Pro 3 is expected to trigger replacement demand, particularly among existing users seeking enhanced health features and better audio. However, its premium pricing limits mass adoption, which will likely keep shipment volumes flat in the short term.
Competitive Pressure Intensifies in the Smartwatch Segment
In the smartwatch market, Apple’s share has steadily decreased to 20%, down from more than 50% in earlier years. Huawei, now at 16%, is closing the gap, fueled by strong sales in China and expanding international reach. Apple still leads globally, but the balance could shift within the next two years if current trends continue.
Counterpoint Research notes that Apple’s shrinking share comes despite its growing iOS user base. The smartwatch market overall declined 2% year-over-year in Q1 2025, primarily due to market saturation in India and a drop in Apple’s shipment volume. China, by contrast, showed a 37% year-over-year growth, driven by Huawei, Imoo, and Xiaomi. These brands are gaining traction both domestically and abroad, challenging the long-standing dominance of global players.
Market Outlook Shows Moderate Growth Ahead
The TWS market is projected to grow 3% in 2025, driven mainly by demand for low-cost models under $50. Counterpoint’s July report attributes this to longer device lifespans and slowing innovation in the premium segment. Apple’s share by volume may dip slightly, but it will likely remain the top brand due to strong brand loyalty and premium offerings.
In the smartwatch space, consumers are shifting toward mid- and high-tier models, particularly in the $100–$200 range. According to Counterpoint, this segment saw 21% growth in Q1 2025, signaling rising interest in advanced features like health tracking and AI integration. The entry-level market, on the other hand, declined 17%, reflecting changing consumer expectations and a willingness to invest in longer-lasting devices.
Counterpoint also reports that the kids’ smartwatch segment continues to expand. Imoo remains the category leader, with strong performance in China and growing adoption in markets like North America, Europe, and Asia Pacific.