This call-in show was all about wearables and whether or not we really need them.
Joining us in the studio was Spyridon Gousetis is the Director of Marketing for Sony Mobile Communications, responsible for the Middle East and Iran markets.
Here are the notes we used to prep for the show.
· The integration of smartphones and wearable tech for everyday experiences
· How integrated are we going to become and why is it necessary?
Research in September 2014 predicted that wearable technology sales were likely to top $53 billion by 2019 and that more than 100 million devices would ship by 2017. Smart healthcare providers and plans have already realized that this trend simply can’t be ignored — nor should it.
Here are some key points from the report:
- Wearables will see plenty of growth. We estimate the global wearables market will grow at a compound annual rate of 35% over the next five years, reaching 148 million units shipped annually in 2019, up from 33 million units shipped this year.
- The smartwatch will be the leading product category and take an increasingly large share of wearable shipments. We estimate smartwatch shipments will rise by a compound annual rate of 41% over the next five years. Smartwatches will account for 59% of total wearable device shipments this year, and that share will expand to just over 70% of shipments by 2019.
- Fitness bands and miscellaneous wearable device types, like smart eyewear, will continue to cater to niche audiences. Fitness bands, because of their appeal to niche audiences interested in health and exercise, will see their share of the wearable device market contract to a 20% share in 2019, down from 36% this year. There will be some blur between fitness bands and smartwatches.
- Now that both Apple and Google are in the smartwatch market, they will dominate, much as they have in the smartphone and tablet markets. Because these platforms make up over 90% of the entire mobile platform market, many mobile users interested in wearable devices will gravitate toward Apple Watches and Android Wear-based devices.
- Barriers still persist, and these will inhibit consumer wearables adoption and usage. Smartwatches in particular must become standalone computing devices with more robust functionality for the devices to become mainstream. Other barriers include small screen size, clunky style, limited battery life, and lack of a "killer app" that can drive adoption.
1. Today, wearable technology is a $700 million industry in the form of sports and activity trackers.
2. First adopters of Google Glass are doing a lot of Web browsing. And although Glass makes up a small part of current total Web traffic, browsing has increased 135 percent in the past year, which is higher than the growth seen in the mobile (38 percent) and tablet (39 percent) categories.
3. Wearable technology provides substantial benefits for job satisfaction and productivity. Employees who are armed with wearable devices in the workplace increase their productivity by 8.5 percent and their job satisfaction by 3.5 percent.
4. Google Glass adoption will climb sharply to 21 million units sold in annual sales by year-end 2018. At $500 per unit, that's a $10.5 billion annual market opportunity.
5. The market for wearable technology is growing at a fast rate. Smart glasses, smart watches, and fitness bands will reach about $3 billion for 2014. New categories will represent about $2 billion in sales, based on 4 million units.
6. In 2013, Fitbits, Jawbone UPs, and Nike FuelBands accounted for97 percent of all smartphone-enabled activity trackers sold at brick-and-mortar stores or through big e-commerce sites
7. For the 52-week period beginning in early January 2013 and ending in early January 2014, Fitbit’s devices accounted for 68 percent of devices sold; Jawbone UP sales accounted for 19 percent of all devices sold; and Nike FuelBand sales made up 10 percent of sales. All other activity tracking devices together accounted for the remaining 3 percent of sales.
8. A hefty 52 percent of people recently polled said they're aware of wearable technology devices. And among those, a third said they're likely to buy one.
9. The smartwatch proved to be the most well-known type of wearable gadget, with 36 percent of people familiar with them. But given the limited number of such devices on the market, only 23 percent said they'd be likely to buy one. Making and receiving phone calls was cited as the top reason for getting a smartwatch, followed by listening to music and tracking fitness.
10. One in six (15 percent) consumers currently use wearable tech, such as smartwatches and fitness bands, in their daily lives.
11. Most wearables owners are young, with 48 percent between 18 and 34 years old. Men and women are equally likely to sport wearable tech. Twenty-nine percent of wearables owners make over $100,000 per year.
12. Fifty-five percent of consumers think wearable technology is too expensive to purchase, while 24 percent of consumers believe they already have too many devices.
13. Worldwide spending on wearable technology will reach $1.4 billion by 2016.
14. Total wearable device shipment volumes will reach 19 million units in 2014. That figure will grow to 111.9 million in 2018.
15. When asked what personal devices they cannot live without, wearable technology devices, such as smartwatches (40 percent) and Google Glass (39 percent), ranked higher than Kindles (27 percent), iPods/MP3 players (21 percent), and video game consoles (17 percent). The combination of functionality, fashion, and "cool factor" are landing wearable tech on mainstream consumer shopping lists.
Here are eight stats on health and fitness wearables we think you should know:
1. Investors have spent over half a billion dollars in equity and debt on wearable tech startups since 2009
2. The global wearables market was worth more than $2.5B in revenue in 2012 and is expected to cross $8B in 2018
3. A $330M industry worldwide, digital fitness trackers are currently the most popular type of wearable device
4. Smart glasses, fitness bands, and watches are predicted to sell about 10 million units in 2014, generating $3B. By 2020, sales are predicted to surpass 100 million units
5. 61% of all wearable devices are fitness or activity trackers
6. 60% of Americans who use wearable tech say it helps them feel more in control of their lives
7. 46% of people who track their health say it has changed their overall approach to maintaining wellness
8. The total number of tweets mentioning “wearable tech” grew from 4,103 in January 2013 to 64,989 in September 2013 (That’s 16X for you non-math wizzes)
What you need to know about wearbales!