Expanding Smartwatch Market... Intensifying AI Competition on the Wrist

Apple Leads the Smartwatch Market in Market Share
Samsung Electronics to Add AI-Based Healthcare Features to Next-Generation Watch

As the smartwatch market expands, competition in personalized healthcare using artificial intelligence (AI) is intensifying. Companies are enhancing on-device AI processing capabilities or advancing AI-based health management services, broadening AI touchpoints to strengthen their competitiveness in the wearable device market.

According to global market research firm Counterpoint Research on July 9, shipments of 'edge AI smartwatches,' which perform AI computations directly on the device, increased by 70% in the first quarter of this year compared to the same period last year. Edge AI smartwatches accounted for 25% of the total smartwatch market, and this share is expected to expand to 32% this year.

Edge AI smartwatches are characterized by performing machine learning computations directly on the device using neural engines or neural processing units (NPUs). Unlike traditional methods that send biometric data—such as heart rate, sleep patterns, and body temperature—to the cloud for analysis, these devices process the data internally. This approach protects personal data while also allowing the device to immediately detect signs of health abnormalities.

The overall smartwatch market is also continuing to grow. In the first quarter of this year, global smartwatch shipments increased by 4% compared to the same period last year. Apple saw shipments rise by 21% year-on-year, while Huawei increased by 12% and Xiaomi by 9%. However, Samsung Electronics experienced a 28% decline in shipments.

On the 24th, Samsung representatives introduced the 'Galaxy Watch' at a briefing held at the Samsung Electronics press room in Jung-gu, Seoul. Photo by Dongju Yoon doso7@

The gap in market share between Apple and Samsung has widened further. Apple maintained its top position with a 23% market share, up 3 percentage points, and led the edge AI smartwatch segment by accounting for about 90% of shipments in this category. Apple was followed by Huawei (17%), Xiaomi (10%), and Samsung Electronics (5%). Samsung Electronics' smartwatch market share fell by 2 percentage points from a year ago.

Unlike Apple, which is increasing smartwatch sales by leveraging its premium iPhone user base and strong ecosystem integration, Samsung Electronics faces limitations in absorbing smartphone demand into smartwatch demand due to its higher proportion of mid- to low-end smartphone sales. An industry official said, "Since Samsung Electronics has a high proportion of mid- to low-priced device sales, many of its consumers are price-sensitive, making the demand for discretionary products like smartwatches relatively smaller."

In 2023, Apple introduced the S9 chip with a four-core neural engine for machine learning computation. Since the launch of the Apple Watch Series 9, which features this component, on-device AI functions and certain health and voice features have been processed directly on the watch. Huawei has also enhanced its watch’s AI capabilities since last year by introducing its self-developed 'Kirin W80' chip and the AI assistant 'Celia.'

Samsung Electronics is seeking a turnaround by strengthening AI-based healthcare services. In its next-generation Galaxy Watch products, Samsung Electronics plans to revamp its Samsung Health service by adding AI-based health insight features. The AI will comprehensively analyze various health data measured by the Galaxy Watch—such as sleep, heart rate, and exercise—to provide personalized health information.

Mohit Agrawal, Director at Counterpoint Research, said, "The AI capabilities of smartwatches are evolving from simply integrating AI-specific chips to optimizing software as well," adding, "AI should develop as a foundational technology that provides personalized services based on individual data, rather than remaining just one feature."

This content was produced with the assistance of AI translation services.