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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.

Xiaomi Raises $5.5 Billion in Share Sale to Accelerate EV Plans

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Xiaomi Corp, the world’s third-largest smartphone maker, announced on Tuesday that it raised $5.5 billion in an upsized share sale as the company ramps up its electric vehicle (EV) manufacturing plans. The company sold 800 million shares at a price of HK$53.25 each, according to a statement to the Hong Kong Stock Exchange.

Originally planning to sell 750 million shares, Xiaomi decided to increase the size of the offering due to strong investor interest during the bookbuilding process. The final share price, which was at the lower end of the HK$52.80 to HK$54.60 price range, represented a 6.6% discount to Xiaomi’s closing price of HK$57 on Monday.

Investor enthusiasm for Xiaomi’s EV plans has played a significant role in the company’s stock performance, with its share price surging nearly 150% from HK$21.5 in the past six months. The sale attracted over 200 investors, with the book being oversubscribed multiple times. The top 20 investors purchased about 66% of the stock offered.

The funds raised will be used to further accelerate Xiaomi’s business expansion and invest in research and technology development, particularly in the EV sector. Xiaomi entered the electric vehicle market last year with the launch of the SU7 sedan. The company reported a 50% jump in fourth-quarter revenue and raised its target for EV deliveries this year to 350,000, up from 300,000.

Xiaomi’s EV business generated 32.1 billion yuan ($4.4 billion) in revenue in 2024, delivering more than 135,000 SU7 sedans. The company plans to start shipping cars overseas in 2027 and is expanding its production capabilities with a new land purchase for its auto factory in Beijing.

In addition to its EV ambitions, Xiaomi is also focusing on AI, planning to allocate 7-8 billion yuan out of its 2025 total R&D budget of 30 billion yuan to AI development. The share sale comes amid a wave of tech-focused capital raisings from Chinese companies, as positive sentiment around the tech sector grows, partly fueled by easing government scrutiny.

Xiaomi to Raise Up to $5.27 Billion Through Share Sale

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Chinese smartphone and electric vehicle (EV) manufacturer Xiaomi Corp is set to raise up to $5.27 billion through a top-up placement, according to a term sheet seen by Reuters. The company will sell 750 million Class B shares, with a price range set between HK$52.80 and HK$54.60 per share, reflecting a discount of 4.2-7.4% compared to its HK$57 closing price on Monday.

Xiaomi intends to use the funds raised for business expansion, investments in research and technology, and general corporate purposes. The move comes on the back of Xiaomi’s recent success, reporting a nearly 50% jump in its fourth-quarter revenue and increasing its target for electric vehicle deliveries from 300,000 to 350,000 units for the year. Additionally, Xiaomi plans to expand its retail presence, aiming to open 10,000 new Mi Home stores worldwide over the next five years.

This share placement follows a broader trend of Chinese firms engaging in equity capital market deals in 2025, with total equity issuance from Chinese companies reaching $16.8 billion in the first quarter, more than double the amount seen a year ago.

Xiaomi’s offering is being managed by Goldman Sachs, CICC, and JPMorgan.