Apple Watch grows 9% in Q1

Smartwatches are back in growth mode — at least for Apple. After a rough stretch, Apple Watch shipments grew 9% year over year in the first quarter of 2026, helped by a refreshed lineup and steadier demand at both the cheap end and the premium end. That sounds like a small number, but it matters because Apple had been dragging the category down for a while. Now the signal looks different: people still are not buying wearables indiscriminately, but they will buy the ones that feel current, useful, and worth upgrading to. ### Why is 9% growth a real story? Because the Apple Watch had been in a slump. Counterpoint’s earlier market data showed Apple returning to annual growth in 2025 after declines in prior periods, and Q4 2025 shipments were already up 15% year over year. Q1 2026 extends that rebound instead of looking like a one-quarter blip. Apple is still the global shipment leader in smartwatches, so when its curve turns up, the whole category feels it. (smartanalyticsglobal.com) ### What actually drove the rebound? Basically, Apple fixed the portfolio gap. The Series 11 and Ultra 3 gave existing Apple users a more current premium option, while the third-generation Watch SE refreshed the entry model for the first time since 2022. That matters more than it sounds — smartwatch demand is very upgrade-driven, and stale lineups get punished fast. The cheaper SE appears to be doing the volume work, while the newer flagship models keep the brand from sliding downmarket. (counterpointresearch.com) ### Why does the SE matter so much? Because volume usually comes from the model that feels “good enough.” The Watch SE is Apple’s easiest sell to first-time buyers, parents buying for kids, and people replacing older watches without wanting Ultra pricing. If that model sits unchanged for too long, Apple loses the broad middle of the market. Refreshing it gave Apple a way to add units without relying only on enthusiasts. (smartanalyticsglobal.com) ### How does this connect to phones? Turns out the same pattern is showing up there too. Counterpoint says global smartphone shipments fell 6% in Q1 2026, but premium devices held up better as memory shortages pushed costs higher and squeezed the low end. Apple’s iPhone 17 was the world’s best-selling smartphone in the quarter, and the top 10 models made up 25% of global sales — the highest Q1 concentration on record. People are clustering around fewer, stronger products. (smartanalyticsglobal.com) ### Where do AI glasses fit in? They are the other wearable story. Counterpoint said global smart-glasses shipments jumped 139% in the second half of 2025, with AI smart glasses making up 88% of shipments and Meta taking 82% share after expanding its lineup. That does not mean glasses are replacing watches. It means wearable demand is shifting toward devices with a clearer pitch — hands-free camera, voice assistant, notifications, translation, search — instead of vague futuristic promises. (counterpointresearch.com) ### And what about VR? VR is the weak spot right now. Counterpoint said VR headset shipments fell 44% year over year in Q4 2025 and were down 28% for full-year 2025. The catch is that VR still asks people to buy a relatively bulky device for narrower use cases, while watches and AI glasses fit into daily routines more naturally. Wearables are winning when they disappear into ordinary behavior. (counterpointresearch.com) ### So what’s the bottom line? Apple’s 9% Q1 watch growth is not just a nice quarter. It shows the hardware market rewarding focus again — better lineups, fewer dead spots, more obvious reasons to upgrade. The broader message is simple: in 2026, consumer tech is getting pickier. Premium phones, refreshed watches, and practical AI glasses are finding buyers. Everything else has to fight harder for attention. (smartanalyticsglobal.com) (counterpointresearch.com)