Apple Watch revenue surpass $100 billion in Q2 2025: What are biggest challenges that world's 'most-popular' smartwatch faces as Apple is set to launch new models on September 9

Apple’s cumulative revenues from its Apple Watches surpassed $100 billion in the second quarter of 2025, according to Counterpoint Research’s Apple 360 Service. The report comes ahead of Apple's biggest event of the year 2025 where the company is set to launch new iPhones and Apple Watch models. The launch is expected to reinvigorate Apple's wearable business as the maker of the world's 'most-popular' smartwatch faces rising competition in China. Today, September 9, Apple is expected to announce a new trio of smartwatches: Apple Watch Series 11, Apple Watch Ultra 3, and Apple Watch SE 3.

Apple's big geographical and other challenges

Despite the success of surpassing the $100 billion revenue mark, the Apple Watch faces a complex and highly competitive market. AS per Counterpoint report, competitors are rapidly innovating, with companies like Huawei securing regulatory approvals for advanced health features such as blood pressure monitoring in its Watch D2.The market for smartwatches is becoming increasingly segmented. Niche competitors like Garmin are dominating the high-end sports market with specialized smartwatches for running, golf, and diving. Meanwhile, companies like Imoo have cornered the global kids'

smartwatch market

. The rise of non-display fitness bands also presents a new threat, challenging the core health features of smartwatches.

These competitive pressures, coupled with a lack of major hardware updates and rising replacement cycles in recent years, have contributed to Apple's sustained sales decline. The company has also lost ground in the crucial Chinese market, where Huawei has now become the top-selling brand. "Additionally, geographical challenges persist, particularly in China – the world’s largest smartwatch market – where Huawei has ascended to become the No.1 brand in Q2 2025," said the report.With the launch of the new Apple Watch lineup, the company is betting on a combination of new features and an expanded portfolio to attract new customers and encourage existing users to upgrade, in hopes of reigniting growth and defending its position as a leader in the wearable technology space.