Two years after small companies set foot in smart watches, some large technology companies also decided to enter this market. Why are these big companies keen on pushing smart watches? Because smart watches can be bundled with smart phones to promote their respective sales; moreover, smart watches can also help these companies' product ecosystems attract and retain more users.
This week, both Samsung and Qualcomm launched their own smart watches. Recently, Sony has also updated its SmartWatch products. Next year, Google (microblogging) and Apple are said to be preparing to launch their own smart watches.
The battle for smart watches suddenly began to heat up, what are these companies fighting for?
Until now, smart watch sales have remained insignificant. Most analysts have only recently started tracking this market, and they estimate that the monthly sales of smart watches are now about several thousand pieces. However, the market is expected to explode in the next five years.
Jeff Orr, a mobile industry analyst at market research company ABI Research, predicts that this year, global smartphone sales will reach 1.2 million; in 2014 it will reach 7 million, and in 2018 it will reach 140 million Piece. He said that the premise of this growth is that three or more large companies enter the market, thereby promoting consumers to use this device.
"I believe that in the technology market, when you want consumers to be interested in a new product, you need to have a big company involved." He said. He refers here to Samsung and Apple, which is said to be entering the market. "They have tentacles in every corner of the world, and there are enough channels to pass this information out."
Other analysts are more optimistic about the future sales of smart watches. Angela McIntyre, research director of market research company Gartner, predicts that this year, smart watch sales are expected to reach more than 5 million pieces; Sales are expected to double.
For a new product, these numbers are already amazing. However, it still lags far behind the smartphone market. In 2007, the year when the first iPhone was released, smartphone sales exceeded 100 million units; this year, this number is expected to exceed 1 billion units.
In other words, the user and revenue growth potential of the smart watch market may not be as good as the smartphone market. However, it brings other benefits to smartphone companies. McIntyre said that manufacturers can bundle smart watches with big phones-mobile phone tablet products-to sell, thereby promoting their respective sales. She also expects that smart watches may even "replace" some smartphone sales in the future. Therefore, the benefits of investing in this technology now outweigh the disadvantages.
"Now, they can sell smart watches with their money-making machines-smartphones." McIntyre said. She also added that smart watches can also help these companies' product ecosystems attract and retain more users.
In addition, analysts also pointed out that people are now generally interested in wearable devices, which may translate into sales of smart watches. Although smart glasses—especially Google Glass—have temporarily ruled the field of wearable computers, many analysts still believe that the market for smart watches is much larger.
Orr estimates that global sales of smart glasses will not exceed 10,000 pairs this year, about 2 million pairs next year, and about 75 million pairs in 2018-only half of the expected sales of smart watches. The reason is that smart glasses are a more professional product and more suitable for some professionals than ordinary users. He also believes that mainstream consumers are psychologically more likely to accept smart watches than smart glasses.
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