Wearable devices products after ten years of development, fitness bluetooth watches and rings, bracelets and so on, easy to use, design fashion, and the price is appropriate, finally accepted by the consumers, and there is considerable room for growth. Two recent reports of independent research firm make exciting predictions respectively, but the capital market to the prospects of future earnings is wearable equipment is very prudent. Between a hot cold, reflect the uncertainties of this kind of new product research and development application.
Smart hand ring, smart watches wearable growth momentum
Double-digit growth trend will continue for 5 years
According to market research firm Gartner2016 year forecast, wearable global sales volume to rise 18.4%, to 275 million pieces. Another research company IDC, focused on the smart watch and bracelet, involves less species, small base, global sales of 110 million, the year increase of 38%. Both think double-digit growth trend will continue until 2019, even in the middle of 2020.
Founded in 2007, Fitbit market leader is wearable. To measure and indicate the amount of walking pace, speed, the sleep quality of fitness activities of the heart, hand ring, currently has a wearable device market share of nearly a quarter. But over the past year the share price, market value by half. In early may, the company released the first quarter performance, sales 4.8 million, gross margin is as high as 50%, very bright, but securities analysts worry about wearable increasingly fierce market competition, the profits will be squeezed. Especially the company issued a forecast for the second quarter and full year results, far worse than the previous estimate, confirmed the concerns of the market, the share price fell by ten percent.
Apple smart watches to the advent of wearable devices bring the growth of the leap, the recent international manufacturing rookie products, such as millet and grab the low-end market, forming the Fitbit competition both ends. Fitbit corresponding strategy is to launch a series of hand ring around the product, such as functional high-end balze, Alta and intelligent watch, at the same time, vigorously into foreign markets, signed a contract with alibaba in Tmall open a shop. Fitbit revealed that, due to the increased investment in research and development, in the near future profits will be affected, so gross margin may be below 40%. The company has worked with amazon Echo, in voice to view your own set of health monitoring index, increase the function of mobile payment on smart watches, set foot in the areas of apple smartphones for the boss. While apple smart watches, with specific monitoring software, health and sports can match Fitbit completely. Global intelligent wrist watch and bracelet manufacturers, including samsung, millet and this year is expected to launch a new generation of products.
In principle, the wrist of the electronic equipment is just a starting point of wearable technology, apparel, glasses, helmet, Lin Lin always, are likely to become the market to be bestowed favor on newly. The combination of science and technology and life together,, convenience and personalized experience. A new generation of software applications can connect to the Internet through bluetooth, WiFi or data, many App without mobile phone can run independently. Fashion designer Ralph Lauren's PoloTech shirt can monitor the wearer's heart rate, breathing deep and balance, and other important data, then feedback the information to the iPhone or apple watches. Held between Google in May of open innovation on the I/O developer conference, shows a cooperation with LEVI's coat, suitable for riding a bicycle in the city of office worker, as long as light brush or pat sleeves, use gestures to control all kinds of functions, you can control music calendar, looking at maps, answering the telephone, and use headphones transmission distance of distance and the time required to destination. Containing much tactile sensing fiber cloth, there is a small button, the power of the charge can be unloaded, the jacket can be folded, washed.
Combination of science and technology and clothing, however, in addition to research and development of flexible material, wear comfortable, but also adapting to fashion design concept and working process, it is trying to change the understanding of clothing function and habits, this has to do with wearing a bracelet difference is big, may need to be quite a time.
Wearable devices to professional development and niche consumers
Due to the sensors and software progress, wearable devices at the same time also to the development of professional and niche consumers, such as athletics, cycling, diving sports specially designed "sports watches," seismic anti-throw, premium differences are part of the space is large, can remain high in price, and sustainability, to manufacturers calmly development opportunities to improve.
Wearable devices, extremely has the potential consumer groups is greying. According to merrill lynch bofa's a survey report, the world is every five years of life increases one year old: is 48, 1950 to 2050, will reach the age of 77. About 900 million people over the age of 60 now, due to the medical and health with longevity as well as the baby boomers enter old age after world war ii, in 2020, the number will exceed 2 billion. Seniors steps for the operation safety, monitoring the heart blood sugar level, assist hearing, emergency notification, could rely on wearable electronic devices. These people not only want and need this kind of product.
Wearable devices used in industry, some from the original for military research and development, similar to the GPS satellite positioning the earliest belongs to the national defense industry, later changed to civil, manufacturer is in the first phase of the research and development on a lift. Helmet mounted display (head mounted displays) turn civilian consumption, used in entertainment, video games. HTC, SONY and Microsoft in this area.
Launched two years ago Google glasses don't succeed, don't say glasses hung in the wearable devices, applications in industry, intelligent glasses for equipment inspection maintenance, can see that, don't need to turn by hand. Intelligent helmet-mounted DAQRI dozen sensors, synchronous transmission environment information, equipped with a thermal camera to check equipment, timely found potential safety hazard, diagnose problems, put forward the mechanical operation effectiveness maximization in the whole plant, exerting the function of the Internet of things the best. DHL (DHL) logistics logistics center in Asia in Singapore ar (Augmented Reality) glasses, designed to compete on technology efficiency.
But investors are not so good cheat, wary of propaganda, with reference to the capital market to the circle inside the quantity of the company's future earnings speculate that help to understand the reality. The huge market potential is often not the media radar screen above, China's aging population structure, manufacturing industry is in transition period, due to their own needs, research and development related to people's livelihood and industrial wearable devices, domestic and foreign market is huge, can attack and retreat and defend, is better than chasing fails type of fashion products.
