Samsung’s 28% smartwatch shipments drop in a growing market
Samsung’s smartwatch decline refers to the sharp fall in Galaxy Watch shipments and market share at a time when the wider wearables category continues to grow and rival brands extend their lead in both premium and affordable segments. According to Counterpoint Research data cited by multiple reports, the overall smartwatch market grew 4% year-on-year in Q1 2026, yet Samsung’s Galaxy Watch shipments dropped 28% in the same period. This slump pushed Samsung’s global shipment share down from 7% in Q1 2025 to 5% in Q1 2026, underlining that the problem is share-specific rather than a category downturn. Apple, meanwhile, expanded its share of shipments to more than 23%, up from 20% a year earlier, while Chinese brands such as Huawei, Imoo, and Xiaomi also increased their volumes. The result is a tougher competitive landscape for Samsung across price tiers.
How Apple turned smartwatch demand into a bigger lead
Apple’s smartwatch market share gains highlight how strong product positioning can turn steady category growth into clear dominance. Counterpoint Research figures show Apple’s smartwatch shipments rising 21% year-on-year in Q1 2026, lifting its global share to more than 23%. One report notes that Apple accounted for more than half of all smartwatch shipments in North America, and also recorded the fastest growth rates in both China and Europe. Analysts point to rising demand for advanced health-tracking features and the role of the affordable Apple Watch SE 3 in pulling more buyers into the ecosystem. Apple’s 2025 smartwatch lineup also supports 5G connectivity, a step beyond Samsung’s Galaxy Watch 8, which is limited to 4G LTE. Combined, these advantages help Apple capture both high-end buyers seeking rich health features and mainstream users moving up from basic fitness trackers.
Chinese brands squeeze Samsung from the value end
While Apple presses Samsung in the premium tier, Chinese competitors are tightening the pressure from the value side of the Q1 2026 wearables market. Reports highlight that brands such as Huawei, Imoo, and Xiaomi increased smartwatch shipments during the quarter, contributing meaningfully to the global 4% growth in shipments. One source notes that Xiaomi’s smartwatch shipments grew 9% year-on-year, while Huawei’s rose 12%. These companies benefit from more affordable models, government-backed subsidy programs in their home market, and consumers upgrading from basic fitness bands to full-featured smartwatches. As average selling prices climbed 6% year-on-year with the addition of new health and AI features, Chinese brands are positioning their products as cost-effective ways to access these capabilities. For Samsung, this means facing not only Apple’s premium pull but also aggressive competition on price and perceived value from rapidly improving Chinese options.
Product timing, feature gaps, and what Samsung must fix next
Samsung’s smartwatch shipments drop is not explained only by seasonality, even though Q1 is usually an off-season for Galaxy Watch sales. The Galaxy Watch 8 and Watch 8 Classic launched in mid-2025, and excitement reportedly faded as 2026 began, unlike the healthier performance seen in Q1 2025 during the same seasonal window. Feature gaps may also be hurting appeal: Apple’s latest models bring 5G connectivity and new health-tracking capabilities, while Samsung’s current Galaxy Watch 8 line is capped at 4G LTE. At the same time, rising memory costs and higher average selling prices are pushing buyers to demand more clear value. Samsung is preparing to release the Galaxy Watch 9, Galaxy Watch 9 Classic, and Galaxy Watch Ultra 2 later this summer, and these devices will need notable upgrades in health features, connectivity, and software to regain lost ground against both Apple and lower-cost Chinese rivals.
