Apple Watch grows 21% as Samsung slumps — what the smartwatch market looks like now

Apple's cheapest Watch just helped the company post its biggest quarterly jump in years — and it came at Samsung's expense. New data from Counterpoint Research shows global smartwatch shipments rose 4% year-on-year in Q1 2026, but the headline number understates how dramatically the top two players diverged.

Apple's SE 3 moment

Apple grew shipments 21% year-on-year, lifting its global market share from 20% to 23%. Analysts credit the Apple Watch SE 3 — priced at $249 in the US and £219 in the UK — as a key driver, giving cost-conscious buyers an entry point without stripping out health features. More than half of Apple's shipments landed in North America, but the strongest growth rates came from China and Europe.

The SE 3 sits well below the Series 11 and Ultra 3 on price, yet still packs sleep tracking, mood monitoring, and arrhythmia detection. Tech Advisor notes it has appeared on Amazon UK for under £200, making the value case even harder to argue against.

Samsung's sharp decline

Samsung had a rough quarter. Shipments dropped 28%, shrinking its market share from 7% to 5%. That's a significant fall for a brand that defined Android smartwatches for years. The gap Samsung is leaving in the mid-market — roughly £200–£400 — creates room for competitors. Garmin and Polar already hold meaningful share in the sports-watch segment, and Wear OS adoption has softened against the pull of watchOS.

China drives volume; prices climb everywhere

Huawei dominated its home market, holding around 40% of Chinese smartwatch shipments. Globally it ranked second with 17% share and 12% growth. China's overall smartwatch market grew 15%, aided by government electronics subsidies. Xiaomi added 9% growth; Imoo, which makes children's smartwatches, grew 2%.

The average selling price (ASP) for smartwatches rose 6% globally. The causes are straightforward: more devices ship with advanced health sensors, AI features, satellite connectivity, and eSIM support. Meanwhile, basic fitness trackers — the cheap bands that once padded shipment numbers — fell more than 6% as buyers in emerging markets upgraded to full smartwatches.

Where this goes next

Component costs are rising — RAM and flash memory are both in short supply — but premium wearables absorb those pressures better than smartphones can, thanks to higher margins. Counterpoint expects the market to grow at around 3% annually through 2030, a steady if unspectacular pace after a rough 2024.

For most buyers right now, the practical takeaway is simple: there are more capable smartwatches at more competitive prices than a year ago, and the SE 3 in particular offers a lot at its price point.