Huge increase in sales of smart watches predicted

Gman496

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New research has suggested that 36 million app-enabled smart watches will be sold globally every year by 2018.

That compares to just over 1 million this year.


The study by UK-based technology analysis firm Juniper Research said the attraction of smart watches will be their multi-functionality.

Features such as payments, ticketing, and tracking fitness and sport activities are the type of functions that will drive sales of the new devices.

Juniper predicts the explosion in sales will be propelled by the entrance into the market of large players such as Samsung and Apple.

Samsung is due to unveil its smart watch in a couple of weeks, and it has been widely speculated that Apple is working on a similar device.

Their entrance into the market, the report predicts, will act as a catalyst for other competitors to enter the space, by lending weight to the devices’ potential to become a valuable product.

"By educating and publicising this device segment to the consumer, Apple and Samsung will indeed act as a catalyst to the market.

"In addition, being a key influencer, these players’ entry into the smart watch segment will benefit existing smart watch players providing an increase in awareness and adoption of other wearable devices," said Juniper's Nitin Bhas.

The report does, however, warn that smart watches will only appeal to niche groups and therefore the market will be limited.

Smart watches are divided into two categories: dashboard/console and multi-function.

The study concludes that multi-function devices will be considered premium products, and this will differentiate them from smart watch products already on the market, such as Sony's Smart Watch and the Pebble.

As a result, prices for multi-function devices will remain steady, because it will be possible to divide them into different price bands.

The study also found that development of the smart watch market will generate significant opportunities for app-developers and accessory manufacturers.
 
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