Huawei has taken a commanding lead in China’s smartwatch market, capturing nearly 40% of shipments in the first quarter of 2026. The scale of that dominance stands out even more as the global smartwatch market continued to rise only modestly, with shipments up 4% year on year.
The broader market is also moving in a more premium direction. Average selling prices increased 6% in the same period, reflecting stronger demand for devices with advanced health tools, AI features, 5G RedCap connectivity, and satellite support.
China remains Huawei’s strongest battlefield
China posted 15% year-on-year growth in smartwatch shipments, giving Huawei a fast-expanding domestic stage on which to widen its lead. Imoo and Xiaomi followed behind, but neither came close to matching Huawei’s scale in the market.
The company’s advantage is built on more than brand recognition. Huawei’s broad product portfolio lets it address different customer groups across several price tiers, which helps it stay visible in both mass-market and premium segments.
HarmonyOS also plays an important role in that position. The tighter integration across Huawei devices creates a smoother user experience and gives existing customers another reason to stay inside the ecosystem.
Health features are now the real selling point
Competition in smartwatches has shifted well beyond design and notifications. Buyers are increasingly focused on health capabilities, and Huawei has leaned into that change with features such as sleep tracking, emotional health monitoring, and arrhythmia detection.
China’s electronics subsidy policy has added another layer of support. The incentive has encouraged consumers to upgrade to newer models, helping sustain momentum in the local market.
According to Anshika Jain of Counterpoint Research, Huawei’s position in China reflects a combination of a wide portfolio, integrated ecosystem benefits, and a premium health-focused strategy. That formula has also helped the company secure a 17% share of the global smartwatch market.
Apple still leads worldwide
Globally, Apple remains the market leader with a 23% share. It also recorded the fastest shipment growth among major brands, rising 21% compared with the same period last year.
Counterpoint Research said a major driver of that performance was the Apple Watch SE 3. The model has attracted new users by offering a more affordable entry point while still delivering meaningful health upgrades.
Those upgrades include more accurate sleep tracking, mood monitoring, and irregular heart rhythm detection. The combination of lower pricing and relevant health functions has kept Apple competitive in a premium market that is becoming increasingly crowded.
Wearables are turning into smarter health devices
The latest market trend shows smartwatches being positioned less as lifestyle accessories and more as AI-powered health devices. As AI and smart sensor technologies become more standardized, consumers appear increasingly willing to pay for features that feel practical and measurable.
Even with the market still expanding, manufacturers face persistent pressure from supply chains and pricing strategy. Those factors are likely to matter even more as global competition intensifies across key regions.