Apple’s Smartwatch Sales Are Plunging. Should You Sell AAPL Stock?

Apple (AAPL) is in the spotlight once again, this time due to an abrupt decline in smartwatch sales. According to a new Counterpoint Research study, Apple Watch shipments fell by 19% year-over-year in 2024, with a precipitous drop in North America, which is its biggest market. As one of Apple’s flagship product lines, this drop caught the attention of investors as part of larger debates over product saturation and innovation fatigue.

However, even with weakness in wearables, Apple is still a cash-generating behemoth. With margins at the forefront, the company consistently outperforms almost all benchmarks. Investors are now left with a decision: Is the slump in smartwatches a warning sign, or just a temporary blip in Apple’s diversified growth engine?