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Apple Watch and AirPods continue to dominate the global market, but not so convincingly

Apple Watch and AirPods continue to dominate the global market, but not so convincingly
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Apple continues to lead the global smartwatch and true wireless earbuds (TWS) markets, according to two new reports from Counterpoint Research. However, the company's position is gradually weakening due to increasing competition from Chinese manufacturer Huawei.

In the fully wireless earphones segment, Apple has held steady at around 21% of the market, down 0.4 percentage points from last year. This gives the company the top spot, while Huawei is second with 8% of the market, and no other brand is above 5%. Counterpoint analysts attribute Apple's stability to its updated AirPods lineup and the expected release of the AirPods Pro 3, which promises enhanced health monitoring capabilities and improved sound. However, the high price of the Pro model may limit sales growth, and a more noticeable increase in shipments is expected after the update of the standard AirPods and the release of a new model with active noise cancellation, approximately in 2027.

In the smartwatch segment, Apple’s share has gradually declined from over 50% to around 20%, but the company still remains the leader. Huawei has quickly climbed to second place with a 16% share, closing the gap as it strengthens its position beyond China and India. Counterpoint notes that Apple has recorded six consecutive quarters of year-on-year share declines, indicating growing competition from Chinese brands, including Imoo and Xiaomi, which are successfully expanding their presence in the global market.

Counterpoint data shows that Apple's wearables business, long supported by iPhone loyalty, still leads its rivals in absolute sales, but the loss of market share points to a intensifying battle for consumers. Huawei's rapid growth and the strengthening of other regional players suggest that Apple could face real challenges in maintaining its leadership in the wearables market in the next two years, especially if competitors continue to release feature-rich devices at more attractive prices.

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