The Gunners were expected to beat the Premier League new boys, but they gave another one of their ordinary away performances, and apart from one glaring miss early in the match, they rarely looked like getting anything from it.
"We created chances and one for example is very clear: the penalty on Sokratis", said Emery. "I don't think we deserved to lose the match, but I appreciate (Sheffield United's) work and I appreciate they are here with their supporters".
"Because if they score the first goal, defensively they're very strong".
Arsenal came into the game with five wins in their last six games in all competitions, while the Blades had lost their last three home games in a row.
"We conceded a lot of corners in the first half and they scored the goal".
"We are going to try and improve, we are already doing well", Luiz said.
"I was delighted last time out at home (a narrow 1-0 defeat to Liverpool) in terms of the performance but we didn't marry it up with a big result". We're not buying £40m, £50m, £60m players who are established internationals who have played all over Europe.
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Emery's men should have taken the lead when Sead Kolasinac curled a ideal low cross towards Nicolas Pepe in the six-yard box, but the unmarked Ivory Coast winger completely miscued his shot.
"We've got players that are making their way in this division".
United made the most of that escape as Arsenal's long-running set-piece issues resurfaced in the 30th minute.
Mesut Ozil was once again left out of the Arsenal squad and, with Pierre-Emerick Aubameyang anonymous, Emery sent on Dani Ceballos, but he shot weakly at Henderson from Bukayo Saka's cross.
Arsenal have been boosted by the return of France striker Alexandre Lacazette, who missed seven games owing to an ankle injury.
For all their territorial dominance in the closing stages, Arsenal lacked composure in the final third.