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.

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.


January 26, 2015 06:22 nmawston

According to our WDE (Wearables) service, Hyundai, of South Korea, recently introduced its Blue Link app for Android Wear devices that will allow US and global drivers to control their vehicle by smartwatch. It is one of the first such products anywhere in the world. Is it a gimmick, or a serious differentiator for Hyundai cars? The answer can be downloaded by clients here.


January 13, 2015 00:08 PLin

According to the latest report ‘Global Smartwatch Display Size Sales Forecast: 2012 to 2020’ from our Wearable Device Ecosystem (WDE) research service, global smartwatch volumes will be dominated by 4 main display-sizes at the end of the forecast period in 2020, which together will account for almost 90% of smartwatch sales.

The global smartwatch market is one of the leading segments in the consumer wearable devices market and is growing swiftly from a low base. Selecting the optimal display size (in inches) is no easy task for hardware, software and service providers. This report forecasts the global smartwatch market by display size from 2012 to 2020. The report is available here to our paid clients.


January 5, 2015 09:12 nmawston

TCL-Alcatel recently soft-launched its OneTouch Watch for developed and developing markets. It is an Android Wear model with an attractive circular formfactor that can be used (almost uniquely for now) with both Android or Apple iOS smartphones.

In addition to its versatility, Alcatel's Watch differentiates heavily on pricing. Our WDE (Wearables) service estimates its wholesale (trade) price at global commercial launch will be around US$115 in Q1 2015 -- that is less than half the price of Apple's pending Watch device.

Alcatel's new multi-platform, low-cost smartwatch strategy is broadly inline with its existing smartphone strategy -- an area where it has had considerable sucess in recent years to become an established top-ten mobile phone player.


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November 28, 2014 11:09 mwilkins

With anticipation of Apple Watch continuing to grow in the run up to its Q1 2015 availability, so too is the interplay between traditional watchmakers and mobile technology vendors. Recently, Swatch CEO Nick Hayek said that he was not worried about Apple Watch, and that it is Apple who is under pressure.

Smartwatches will be a leading category in the rapidly growing wearable device market, with Smartwatch sales to grow over 400% in 2015, according to Strategy Analytics Wearable Device Ecosystems (WDE) service. The Smartwatch category has already received the attention of major mobile device vendors (such as Samsung, Sony, LG, and Motorola), and the competition between traditional watchmakers and smartwatch vendors is only going to grow as they vie for consumer spend.

 

The first official showing of Apple Watch by the company in September, revealed a device which is clearly the result of a huge amount of work, and one which Apple is still developing in the run up to its commercial availability in Q1 2015. The premium pricing of Apple Watch (the cheapest model is $349) puts the device at the high-end of Smartwatch pricing, but one which the company’s ultra-loyal installed base will surely snap up as soon as possible.


October 28, 2014 16:21 nmawston

According to new research from our WDE (Wearables) service, global smartwatch shipments grew a healthy +200% YoY in Q3 2014. The market was driven by Tizen and Android, as a result of Samsung offering a number of devices using the two platforms. Our pubished report -- available to clients -- tracks global smartwatch shipments and marketshare by operating system by quarter for 2013 and 2014. The report 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.