Are wearables wearing thin?

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The wearables market has had a rollercoaster ride in recent months. This time a year ago analysts were penning multi-billion dollar forecasts for the developers of health trackers and smartwatches. Apple was setting the stakes high, brazenly selling a gold edition of the Apple Watch for US$10,000.

More recently though, once popular fitness tracker brand, Jawbone, confirmed to TechCrunch that it would be leaving the consumer market in order to focus on healthcare providers. Microsoft have also removed its Fitness Band from its online store (although it is still available on Amazon); most significantly they will no longer provide the Band developer kits.

Fitbit remains a leading brand name, and is still very much the heart of the fitness tracker revolution. Fitbit recently acquired one of its rivals, Pebble Watch. However, on the downside, it was reported that the company were making staff cuts and founder James Park said the firm had experienced “softer than expected” sales during the 2016 Christmas period.

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Numerous devices claim to measure heart rate, sleep activity and count calories. Counting steps is seemingly the most common use for wearable devices, which has been edifying for many in terms of daily exercise expectations. Recently, though, experts have questioned whether the golden goal of walking 10,000 steps a day is actually worthwhile, and a US study concluded that health trackers did not aid weight loss.

Mr Bryant from Futuresource says many wearables aren’t yet independent enough and rely on being tethered to a smartphone, or replicate functionality, such as step counting, that the handset already has. However, Mr Bryant believes that while wearables may be down, they are not yet out.

“We feel the slowdown is temporary and the market will accelerate this year,” he said. He thinks that improved power, appearance, and mobile pay options could give them a boost alongside a maturing user group.

Wearable Devices will be one of many themes explored at our 28th Annual OTC INSIGHT European Conference & Action Workshop, being held in Munich in just over a month! The wider conference will focus on the theme of Making the Most of New Technology. To reserve one of our final few places, please contact lianne.hill@NicholasHall.com

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