Apple’s AirPods and Apple Watch continue to lead their respective markets, yet both face increasing competition that could challenge their dominance in the near future.
AirPods: Sustaining Leadership in a Growing Market
In the first quarter of 2025, Apple shipped 18.2 million AirPods, securing a 23.3% share of the global true wireless stereo (TWS) market. This performance underscores Apple’s stronghold in the wireless earbuds sector, even as the overall TWS market experienced its highest growth rate since 2021, with shipments increasing by 18% year-over-year to 78 million units. ([iclarified.com](https://www.iclarified.com/97394/apple-leads-global-wireless-earbuds-market-in-q1-2025-chart?utm_source=openai))
Apple’s ecosystem integration and focus on health-related features have been pivotal in maintaining this leadership. The upcoming AirPods Pro 3, anticipated to include enhanced healthcare functionalities and an immersive audio experience, is expected to stimulate replacement demand among existing users. However, due to its premium price point, significant growth in shipment volumes may not be immediate. A more noticeable increase is projected around 2027, coinciding with the release of standard AirPods and a new version equipped with active noise cancellation (ANC). ([9to5mac.com](https://9to5mac.com/2025/07/03/apple-watch-and-airpods-continue-to-dominate-the-global-market-for-now/?utm_source=openai))
Despite a slight decline of 0.4% in market share, bringing it to approximately 21%, Apple remains the undisputed leader in the TWS market. Huawei follows in second place with an 8% share, while no other brands exceed a 5% market share. ([9to5mac.com](https://9to5mac.com/2025/07/03/apple-watch-and-airpods-continue-to-dominate-the-global-market-for-now/?utm_source=openai))
Apple Watch: Facing Challenges in the Smartwatch Arena
The Apple Watch has long been a dominant force in the smartwatch market, at times holding over 50% of the market share. However, recent data indicates a decline, with Apple’s share now estimated at 20%. This positions Apple as the market leader, but with a narrowing lead over Huawei, which has captured 16% of the market. ([9to5mac.com](https://9to5mac.com/2025/07/03/apple-watch-and-airpods-continue-to-dominate-the-global-market-for-now/?utm_source=openai))
This decline marks the sixth consecutive quarter of year-over-year decreases for Apple in the smartwatch segment. Despite this trend, Apple’s expanding iOS user base has helped the company retain its top position. Nevertheless, Huawei’s rapid growth, driven by its expansion beyond traditional markets in China and India, suggests that Apple’s leadership could be further challenged in the coming years. ([9to5mac.com](https://9to5mac.com/2025/07/03/apple-watch-and-airpods-continue-to-dominate-the-global-market-for-now/?utm_source=openai))
The global smartwatch market itself has seen a 7% decline in sales, influenced by reduced demand in key regions such as India. While Apple continues to lead with a 22% market share, the lack of significant innovations in the Apple Watch Series 10 and the absence of an anticipated Apple Watch Ultra 3 have contributed to decreased demand. In contrast, competitors like Samsung, Huawei, and Xiaomi have experienced growth, with Xiaomi notably achieving a 135% increase, entering the top five brands for the first time. ([cincodias.elpais.com](https://cincodias.elpais.com/smartlife/gadgets/2025-03-19/ventas-apple-watch-caida-libre-2024.html?utm_source=openai))
Strategic Implications and Future Outlook
Apple’s continued dominance in the AirPods and Apple Watch markets is a testament to its strong brand and ecosystem integration. However, the company must address the challenges posed by rapidly growing competitors. In the TWS market, Apple’s focus on health features and seamless device integration has been advantageous, but the high price point of premium models may limit broader adoption. The anticipated release of more affordable models with ANC capabilities in 2027 could help Apple maintain its leadership position.
In the smartwatch sector, the decline in market share highlights the need for innovation and responsiveness to consumer demands. The upcoming release of new Apple Watch models in September 2025, potentially including the Apple Watch Ultra 3, may offer the enhancements needed to revitalize sales and counteract the gains made by competitors.
Overall, while Apple maintains its leadership in both markets, the company must navigate an increasingly competitive landscape by leveraging its ecosystem strengths, introducing innovative features, and addressing pricing strategies to sustain and grow its market share.
