Apple Captured 90% of Smartwatch Market with Edge AI, Growing 70% Year-over-Year

According to Counterpoint Research's analysis, the smartwatch market with embedded AI capabilities (Edge AI) is showing explosive growth in the first quarter of 2026, with Apple occupying an overwhelming majority of this growing segment.

Market Growth for Edge AI in Smartwatches

Key figures:

• Market growth: 70% year-on-year in Q1 2026
• Apple's share: 90% of all shipments
• Technology: local AI processing on the device (Edge AI)

This growth reflects growing attention to data privacy and device performance.

Local AI on Apple Watch

Apple implements Edge AI through an embedded neural processor that handles:

• Gesture commands and control
• Voice assistant Siri requests
• Health functions (fall detection, ECG)
• Security features

All of this happens on the device without sending data to the cloud, ensuring privacy and reducing latency.

Why This Matters

The evolving trend — the transition from cloud AI to local — means:

• Greater device autonomy
• Better user privacy
• Faster system response
• Less dependence on connectivity

What This Means

Apple's dominance in the Edge AI smartwatch market shows that consumers value privacy and local processing. This may inspire competitors to invest in their own processors with AI capabilities.