Apple watch surpasses $100 bn in cumulative revenues in Q2 2025

Apple’s cumulative revenues from its smartwatches surpassed the $100 (Rs 8.81 lakh crore) in the April-June quarter of 2025, according to a report by Counterpoint Research. Meanwhile, it continues to face intensifying competition as competitors improve hardware designs, enhance sensor accuracy for health monitoring, and secure regulatory approvals for new health conditions.

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Apple’s increase in the cumulative revenues, the report added, was a result of continuous evolution of the Apple Watches’ health features and health-monitoring use cases, thus expanding its utility. The company also broadened its portfolio, which helped it further increase its market reach, and the seamless integration with iPhones enhanced user experience.

Apple has created a new category within the premium watch market, challenging the luxury analog watch segment and has introduced industry leading innovation and health-focused features such as FDA-approved ECG in the Series 4, UWB chip in the Series 6, and FDA-approved sleep apnea detection in the Series 10.

The report further noted that Apple has also diversified its portfolio over time with the affordable Watch SE suited to more price-conscious consumers and the high-end Watch Ultra. "The Watch SE has been particularly effective in attracting new users in price-sensitive emerging markets. Apple Watch has also been key in strengthening Apple’s ecosystem and customer retention, as the watch’s compatibility is exclusive to iPhones."

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However, Apple faces intensifying competition as competitors improve hardware designs, enhance sensor accuracy for health monitoring, and secure regulatory approvals for new health conditions like Blood Pressure Monitoring in the Huawei Watch D2. Niche competitors like Garmin, with high-end sports-focused smartwatches for activities such as running, golf, and diving are also growing.

Meanwhile, Imoo dominates the growing global kids’ smartwatch market. There is also a new emerging category of non-display fitness bands that can challenge the health features in smart watches.

"This competitive landscape, combined with intermittent launches of the SE and Ultra, rising replacement cycles, and lack of significant hardware updates, has led to Apple registering seven consecutive quarters of YoY declines as of Q2 2025." Additionally, geographical challenges persist, particularly in China – the world’s largest smartwatch market – where Huawei has ascended to become the No.1 brand in Q2 2025.

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However, Apple’s watch segment is expected to return to growth in 2025 with the slated launch of the 10th anniversary-edition Watch Series 11, Watch Ultra 3, and possibly a Watch SE 3. They could pack newer features like satellite messaging, blood pressure monitoring, and Apple Intelligence integration with WatchOS 12.

The combination of an expanded product portfolio and newer features is expected to help Apple reverse its market decline by attracting new customers and encouraging upgrades among existing users.