Apple Watch Dominance Under New Threat As Huawei Registers Smartwatch As Medical Device

Huawei Technologies has found an unconventional way to boost smartwatch sales in China—by registering them as medical devices.

What Happened: Huawei's Watch D2, launched in November, has gained traction in China after consumers realized they could charge it to their medical insurance accounts, reported Bloomberg on Monday.

The Huawei watch costs 2,988 yuan ($409). It includes several health features, including blood pressure, sleep quality, heart rate, and step count. This qualifies it as a medical device under China's insurance system.

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The move has led to high demand, with some pharmacies requiring pre-orders and limiting purchases to prevent resales.

“The watches are currently not available,” a Shanghai pharmacy told local media. “Buyers need an appointment, and over 500 people are in the queue.”

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Why It Matters: By branding its smartwatches as health essentials, Huawei has tapped into China's healthcare system, covering 95% of the population.

Apple Inc. AAPL Watches, despite their advanced health tracking, do not hold medical device status in China, meaning consumers must pay out of pocket.

However, Huawei's move has sparked also controversy, with concerns that more tech firms could exploit medical labeling, straining China's healthcare resources, the report noted.

Some regions, like Ningbo, have already temporarily suspended such purchases while authorities review regulations.

An IDC report revealed that Huawei led smartwatch shipments with a 16.9% market share, surpassing Apple's 16.2% in the first three quarters of 2024.

Xiaomi secured third place with 20.5 million shipments and a 14.7% market share. Samsung came next with 11.5 million units. The BBK Group, which owns Oppo, Vivo, OnePlus, and Realme, followed with 7.8 million.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.