Report Highlights

  • Q1 shipments of self-branded products rose 25% YoY, and revenue grew 10% — both in line with our estimates. However, EPS fell from -$0.06 to -$0.08, 9% below our forecast, primarily driven by higher marketing spend.
  • In Q1, Zepp maintained its position as the seventh-largest global smartwatch maker by unit sales, trailing Apple (NASDAQ: AAPL), Samsung (KOSE: A005930), Garmin (NYSE: GRMN), Fitbit (Google/NASDAQ: GOOGL), Xiaomi (SEHK: 1810), and Huawei. For comparison, Apple sells ∼25M units annually, while Zepp sells ∼2-3M units.
  • Global smartwatch shipments remained relatively flat YoY in Q1 2025. While Apple’s shipments declined 2%, other key players posted modest gains, with Zepp’s 10% growth standing out as one of the strongest. Consensus estimates forecast 2% growth in 2025,   following a slight decline in 2024, fueled by more upgrades, rising health awareness, AI integration, and increased wearables popularity.  
  • Zepp’s Q1 revenue growth was primarily driven by the launch of the Amazfit Active 2, targeting fashion-conscious, health-oriented consumers. In March 2025, Zepp launched the Bip 6, a lightweight smartwatch with enhanced health monitoring features. We note that both products have garnered positive reviews as affordable alternatives to premium brands like Apple, Samsung, and Garmin. The company plans to release multiple product upgrades this year, which should drive organic growth. Management anticipates a 20–35% YoY increase in revenue in Q2.