The global smartwatch industry saw shipments drop by around 4% year over year in the second quarter of 2026. Apple, Garmin and Huawei stood out by delivering gains despite the broader downturn. A new Counterpoint Research report reveals how these companies navigated a challenging market.
Apple’s Strong Q2: What’s Driving the Surge
Apple led all major smartwatch vendors in growth, posting a 14% increase in shipments year over year in Q2. That performance gave it a 20.1% share of global smartwatch shipments, making it the second largest vendor overall—just behind Huawei. Apple’s upswing was driven largely by its late-2025 lineup. The Series 11 and the third-generation Watch SE accounted for more than four-fifths of Apple’s global shipments during the quarter. The company also registered gains across every major region, with China emerging as a key growth market, where a consumer-electronics subsidy program helped spur demand.
Huawei, Xiaomi, Garmin: Mixed Fortunes
Huawei held onto first place in global smartwatch shipments, growing 1% year over year and claiming about 21.8% market share. Much of its advance came from China, which represented roughly 80% of Huawei’s total shipments. Xiaomi, meanwhile, saw a sharp decline—its shipments dropped 38%, pushing its market share down to 6.1%. Imoo also had a dip: shipments fell about 3%, though it still held a 7.8% share. Garmin stood out among mid-tier brands, managing an 11% growth and securing a 5.6% slice of the market. Brands outside the top five collectively suffered, with shipments down about 8% and together holding 38.5% of the global total.
This report highlights just how volatile the smartwatch space remains. Even as the broader industry contracted, Apple’s refreshed product line appears to have resonated with consumers across the world, allowing it to outperform peers. Huawei remains the biggest name in sheer shipments, but Apple is closing the gap.
Analytically, this performance signals that product updates still matter deeply in wearables, especially when paired with regional policies like China’s subsidy program. As the market pivots toward smarter health features, longer battery life, and tighter integration with broader ecosystems, brands unable to modernize quickly are likely to fall behind. The next few quarters—especially amid intensifying competition—will show whether Apple’s momentum can turn into sustained dominance or just another peak in a volatile cycle.
