Apple’s ‘iWatch’ could send wearable sector into overdrive: research
by Jak Phillips | 01 Sep 2014
A mock-up of how the iWatch may look when it is finally released / ADR Studio
Launches of wearables from tech giants such as Apple have the potential to revolutionise the fast-growing market and “reshape the way people think,” according to a new report.
Mobile communications and internet analyst CCS Insight, predicts that shipments of smart wearables will grow from 9.7 million in 2013 to 135 million in 2018 in its new global forecast, with the entrance of Apple – long-rumoured to be developing an “iWatch” – expected to be a major game-changer.
"The market could be changed beyond recognition if a major player like Apple decides to get into the game,” said CCS Insight's director of forecasting Marina Koytcheva.
“History shows us that when Apple enters a market it can reshape the way people think about a product."
The forecast predicts that wrist-worn devices will account for 87 per cent of wearables to be shipped in 2018 — comprising 68 million smartwatches and 50 million smart bands with no screen or with a minimal, one-line display. It also suggests that stand-alone cellular wearables will become more prominent, with devices containing their own SIM cards expected to be announced in the coming months. However, the research adds, these devices will face significant challenges as people are reluctant to take out another contract with their mobile operator.
North America currently leads the way in terms of adoption of wearables, with 5.2 million wearables sold there in 2013 and more than 40 per cent of all wearable devices being owned by its citizens. The survey says this region has been fast to adopt the new technology, partly because many wearable developers are based there, but adds that Western Europe is catching up and is expected to buy more wearables than North America from 2016.
But as Koytcheva adds, the sector’s relative infancy means that developers are still exposed to a great deal of risk – as well as opportunity.
"The market is still in a chaotic stage of development, and there's still a huge amount of uncertainty,” she added.
“Every category faces different risks: the way people use wearables is still changing, one type of device could kill sales in another category, people are unsure whether some wearables are socially acceptable, and intellectual property rights are a minefield for the dozens of start-ups entering the wearables market.”
Launches of wearables from tech giants such as Apple have the potential to revolutionise the fast-growing market and “reshape the way people think,” according to a new report. Mobile communications and internet analyst CCS Insight, predicts that shipments of smart wearables will grow from 9.7 million in 2013 to 135 million in 2018 in its new global forecast, with the entrance of Apple – long-rumoured to be developing an “iWatch”
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