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Global Smartwatch Sales See First Decline in 2024, While Xiaomi Records Strong Growth: Counterpoint

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In 2024, global smartwatch shipments experienced a 7 percent year-on-year (YoY) decline, marking the first drop in sales in recent years, according to a new report from market research firm Counterpoint. Despite the overall downturn, Apple maintained its dominant position in the market, followed closely by Huawei and Samsung in second and third place. However, Apple experienced a significant 19 percent YoY decline in shipments, primarily due to a slowdown in its Apple Watch SE lineup and the lack of new SE model releases.

The drop in Apple’s shipments has had a notable impact on the overall market, but Chinese brands such as Xiaomi, Huawei, and Imoo have seen impressive growth in 2024. Xiaomi, in particular, recorded the fastest growth and secured a place among the top five smartwatch vendors for the first time. This surge in sales highlights the growing demand for affordable yet feature-rich smartwatches, a segment where Xiaomi has proven competitive. Huawei also performed strongly, securing second place with a 35 percent YoY growth, bolstered by the popularity of its smartwatch offerings.

Samsung, which has consistently held a top spot in global smartwatch shipments, saw modest growth in 2024, with a 3 percent YoY increase. This growth can be attributed to the success of its recent Galaxy Watch models, including the Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE. These models have been well-received, helping the South Korean brand maintain its foothold in the market amidst a broader decline in smartwatch sales.

While the overall smartwatch market faced challenges in 2024, the rise of Chinese brands like Xiaomi and Huawei, as well as the continued success of Samsung’s latest models, suggests that the landscape is shifting. With growing competition and evolving consumer preferences, companies will need to innovate and adapt to maintain their positions in this increasingly dynamic market. As the year progresses, it will be interesting to see how brands adjust their strategies to meet the demand for smarter, more affordable wearables.

Samsung Electronics Co-CEO Han Jong-hee Dies, Jun Young-hyun Becomes Sole CEO

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Samsung Electronics announced on Tuesday the sudden death of co-CEO Han Jong-hee, who passed away at the age of 63 after suffering a heart attack. Han’s death leaves newly-appointed CEO Jun Young-hyun in charge of the tech giant as it faces challenges in its underperforming chip division and navigates uncertainties in global trade.

Han, who had a distinguished 40-year career at Samsung, was known for his pivotal role in building Samsung’s influential television business. Despite his unexpected passing, Samsung stated that Jun would now serve as the sole CEO, after Han had previously shared leadership responsibilities with him, overseeing the company’s consumer and semiconductor divisions.

Jun’s appointment as co-CEO was announced just a week ago at Samsung’s annual shareholders meeting. He had been promoted in 2024 to lead the semiconductor division, which has been lagging behind competitors like SK Hynix and TSMC, particularly in the growing artificial intelligence (AI) chip market.

Samsung has faced difficult times in recent quarters, with weak earnings, a declining share price, and struggles in its semiconductor and smartphone divisions. The company has fallen behind in advanced memory chips and AI-related contract chip manufacturing, sectors in which rivals have enjoyed strong demand, particularly due to the AI boom. Han had acknowledged these challenges during the shareholder meeting, citing 2025 as a potentially tough year and emphasizing Samsung’s efforts to flexibly respond to trade challenges, including U.S. tariffs.

Han’s passing could have a long-term impact on Samsung’s business strategy, particularly in marketing and other areas like home appliances. The company is also exploring new growth opportunities in automotive electronics, a sector Samsung aims to expand into for future revenue streams.

India Orders $601 Million Tax Demand from Samsung for Telecom Imports

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India’s customs authorities have issued a significant tax demand against Samsung, ordering the company and its executives to pay $601 million in back taxes and penalties for allegedly dodging tariffs on essential telecom equipment. This demand represents a substantial portion of Samsung’s $955 million net profit in India for the previous year and is one of the largest such demands in recent years.

The issue revolves around Samsung’s importation of critical transmission components used in mobile towers, which were allegedly misclassified to avoid tariffs of 10% or 20%. The components, primarily used by Mukesh Ambani’s telecom giant Reliance Jio, were deemed by Indian officials to be misclassified in a way that avoided tariffs. Despite warnings from Indian tax authorities in 2023, Samsung contended that the components did not attract the tariffs, and argued that its classification practices had been longstanding.

The Indian authorities, however, determined that Samsung had “knowingly and intentionally presented false documents” to evade taxes, accusing the company of violating Indian laws and business ethics. As a result, Samsung was ordered to pay 44.6 billion rupees ($520 million) in unpaid taxes, along with an additional penalty, while seven Indian executives face fines totaling $81 million.

Samsung is considering its legal options, asserting that it complied with Indian tax laws. The dispute has heightened concerns among foreign companies in India, particularly as the country intensifies oversight of foreign imports. The case also comes amid other high-profile tax disputes involving global companies, such as Volkswagen’s ongoing legal battle over a $1.4 billion tax demand.