Wearable Device Ecosystem

Wearable Device Ecosystems provides a deep dive into the fast-developing market where there is no dominant paradigm in terms of form factor, ecosystem, enabling technologies or use cases.

April 24, 2015 08:41 CRaskind

Google this week uncorked the details of the biggest Android Wear update to date in an official April 20th blog. Wear OEM’s, SDK developers and ultimately end-users will all appreciate new wrist-centric functionality that, by design, will put Android Wear on more competitive footing with the Apple Watch.

In fact, a ‘cloud’ implementation of WiFi not limited by the WiFi range of the smartphone in some ways beats Apple Watch (voice support is not yet outlined, which we would like to see). The topology proximally liberates the smartwatch from its ‘host’ phone in a way that makes it even less of an ‘accessory’, and does so without the bulk and attendant BOM/subscription costs of embedded cellular.

What’s more, by un-burying access to apps and contacts, adding wrist-gesture UI controls and intelligently adding ‘always-on’ ambient glanceability for watch functions as well as apps— Wear has taken an additional major step away from simply porting the Android experience to watches. While a dearth of features and apps that demonstrate obvious value-add by being on the wrist are today a critical demand inhibitor (right next to fashion and practical convenience) Android Wear is making real strides towards a wrist-first ecosystem.

These are key reasons that SA estimates Android Wear smartwatch sales growth over the next 5 years will be more than twice that of the average for growth in global smartwatch sales.

 


April 14, 2015 01:08 nmawston

According to our WDE (Wearables) research service, global smartglasses sales will grow +200% from an emerging base in 2015. We expect technology heavyweights -- such as Google, Samsung, Microsoft, Epson and others -- to expand the market steadily in coming years. North America, Western Europe, China and developed Asia will be the leading regions to target for volume and value. This report forecasts global smartglasses sales, for 88 countries worldwide, from 2012 to 2020. Almost every major country worldwide is covered, including United States, China, India, Indonesia, Japan, South Korea, Russia, Brazil, Mexico, South Africa, Saudi Arabia, UK, Germany, France, Italy and Spain. Our report -- available for clients here -- can be used by hardware vendors, component suppliers, operators, software developers, content developers and other stakeholders to determine the future size and growth rate of the global smartglasses market.


April 10, 2015 17:52 CRaskind

With battery life a key concern, Apple appears to have taken no chances with dead units in stores. Each watch holder in the drawer seen blow has its own charger, and it would not be surprising to learn that alerts are triggered if more than two units are removed at once. Such limited distribution, expertise at retail, and safeguards are likely reasons that the operator path to market was sidelined for Apple Watch. As predicted however in the WDE Insight "Apple Watch Not Yet a Slam-Dunk", Apple will need to open up the operator path to market beyond the critical launch of version 1 to maximize the future potential of the Apple Watch product line.

Strategy Analytics' detailed outlook of global Smartwatch sales, by region and for 88 countries, is also a valuable reference for to WDE subscribers and can be accessed here.

 

http://money.cnn.com/video/technology/2015/04/10/apple-watch-in-stores.cnnmoney/index.html

 

CNN's visit to the Apple Store in New York to see "What it's like to shop for the Apple Watch" reveals a tightly controlled retail experience, as expected. Potential pre-orderers can visit one of 10 tables in each store and have up to 15 minutes to try on selections from a variety of configurations on display.  Those willing to part with $10k or more for an Apple Watch "Edition" (or at least appear willing and able to do so) are escorted to a more private and secure room in select Apple Store locations. High end jewelers are also said to be part of the "Edition" channel.

 


April 1, 2015 11:10 nmawston

According to new research from our WDE (Wearables) team, Google's departure from the smartglasses arena it pioneered in 2013 will be temporary. Google (and others) will come back stronger in 2016. The global smartglass market will continue be dominated by one display size, which will account for over 80% of global smartglass sales at the end of the forecast period in 2020.

Our published report -- available to clients here -- forecasts the global smartglass market by 11 display sizes, and by left-eye and right-eye display location, across the 2013 to 2020 period.


March 31, 2015 10:16 nmawston

Our WDE (Wearables) research team attended Baselworld -- the world’s largest tradeshow for watchmakers -- in Basel, Switzerland, during March 19th to 26th, 2015.

Our published report -- available to clients here -- is a summary and analysis of 15 meetings we held at the event with companies as diverse as Rolex, Casio, Fossil, Swatch, Mondaine and MyKronoz.

What we found at Baselworld is a watch industry heavily in denial about the threats and opportunities offered by an emerging wave of smartwatches (e.g. Apple Watch).


March 12, 2015 08:16 CRaskind

Strategy Analytics believes the Apple Watch largely delivered on most fronts. It will lead smartwatch volume in 2015 and absolutely dominate value share for the foreseeable future. More broadly the entire Wearables market can thank Apple for ushering in a new phase of consumer awareness this week and early mainstream adoption come April. However, the watch and its use cases were not as ground-breaking as many had expected and publicly stated operator commitments to ranging the product have yet to materialize. While 15.4 million Apple Watches will ship worldwide in 2015 we are therefore guiding that demand may lag slightly behind supply. Several million units will be snapped up by Apple enthusiasts in the initial wave, but the Apple Watch is NOT a slam-dunk. Before 2016 Apple needs to preview a significantly improved watch with more functionality that clearly belongs on the wrist.

 

 


March 5, 2015 12:07 nmawston

According to the latest research from our WDE (Wearables) research service, the Apple Watch smartwatch will ship 15 million units worldwide in 2015. Apple will quickly become the world’s number one smartwatch vendor with 55 percent global marketshare this year.

We forecast total global smartwatch shipments to grow 511 percent from 4.6 million units in 2014 to 28.1 million units in 2015. Most of the smartwatch growth will come from the new Apple Watch, which we forecast to ship 15.4 million units worldwide in 2015. Apple will quickly become the world’s number one smartwatch vendor and capture 55 percent global marketshare this year.

The Apple Watch is the catalyst to ignite the global smartwatch market. Apple’s famous brand, loyal fan base, deep retail presence and extensive apps ecosystem will ensure healthy uptake for its Watch. However, Apple’s first-generation Watch is not yet perfect. For example, Apple’s Watch hardware design is arguably less attractive than some rival models such as the Huawei Watch, battery life may not be as long as many traditional wristwatch owners are used to, and Apple’s premium pricing may be challenging for mass-market consumers. Apple will need to upgrade tangibly its second-generation Watch to stay ahead of competitors later this year.

 

Exhibit 1: Global Smartwatch Shipments Forecast by Vendor in 2015  [1]

Global Smartwatch Shipments Forecast by Vendor (Millions of Units)

2014

2015

Apple Watch

0.0

15.4

Others

4.6

12.7

Total

4.6

28.1

     

Global Smartwatch Marketshare Forecast by Vendor (%)

2014

2015

Apple Watch

0.0%

54.8%

Others

100.0%

45.2%

Total

100.0%

100.0%

     
     

Source: Strategy Analytics

   

 



[1]  Numbers are rounded. The 2014 data are actuals. The 2015 data are forecasts.


March 2, 2015 09:20 nmawston

According to our WDE (Wearables) research service, global fitness band shipments were dominated by Fitbit, Jawbone and others in the fourth quarter of 2014. But low-end Chinese brands, like Xiaomi, are now getting in on the act -- their ultra-low-cost, basic fitness bands (under US$25 wholesale) are surging at home in China. Our report -- published to clients here -- tracks global fitness band shipments and marketshare by hardware vendor by quarter for Q4 2014. It can be used by device makers, component suppliers, operators, software developers, content suppliers and other stakeholders to determine the size of the global fitness band market.


February 13, 2015 04:44 PLin

According to the latest report -- Global Smartwatch OS Marketshare: Q4 2014 -- from our  Wearable Device Ecosystem (WDE) research service -- global smartwatch shipments grew +142% YoY in 2014. The market was driven by Android and Tizen, as a result of Samsung, Sony, LG, Motorola and others offering a number of devices using the two platforms.   

Our report tracks global smartwatch shipments and marketshare by operating system by quarter for 2013 through Q4 2014. It can be used by hardware vendors, component suppliers, operators, software developers, content suppliers and other stakeholders to determine the size and growth rate of the global smartwatch market. The report is available to clients here.


February 13, 2015 02:12 PLin

According to the latest report -- Global Smartwatch Vendor Marketshare: Q4 2014 -- from our  Wearable Device Ecosystem (WDE) research service -- global smartwatch shipments grew +142% YoY in 2014. The market continued to be driven by Samsung and its Gear models with Tizen and Android Wear platforms. Sony, LG, Pebble, Motorola, Asus and others are also building a presence.  

The global smartwatch market is one of the leading segments in the consumer wearable devices market and is growing swiftly from a low base. Our report tracks global smartwatch shipments and marketshare by hardware vendor by quarter for 2013 through Q4 2014. It can be used by device makers, component suppliers, operators, software developers, content suppliers and other stakeholders to determine the size and growth rate of the global smartwatch market. The report is available here to our paid clients.