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Smartwatches Are Big, Pricey -- and Ugly

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Smartwatches Are Big, Pricey -- and Ugly Smartwatches are big, pricey -- and ugly By Matt Hamblen for COMPUTERWORLD September 20, 2016 Apple, other makers, conducted the survey said Greg Petro, CEO of challenged to create released today. First First Insight. "One reason variety of smartwatches Insight calls itself a is that smartwatches that at lower price predictive analytics firm have come to market that uses survey results, haven't met consumers' Consumers in a recent and then applies its own lofty expectations. Pricing survey said today's algorithms for further is an area of contention smartwatches are too insights. Its findings are and confusion. Consumers expensive, too big and purchased by retailers, clearly don't value even "ugly." manufacturers and others. smartwatches as much as That's not good news manufacturers thought for the Apple Watch The smartwatch market they would at this point in Series 2, which went on plummeted in early 2016 time." sale Friday starting at after high expectations in $369. 2014, when smartwatches With the Series 2, began to arrive on store Apple focused on sports Negative findings in shelves. Some industry and fitness enthusiasts and the online poll of 1,506 analysts have high hopes even included a special North Americans equally for Apple's next- Nike-branded version. But apply to Apple, Samsung, generation smartwatch. there are many other LG, Motorola and others They said buyers held off capabilities that Apple in the smartwatch market. purchasing the original isn't marketing heavily. Nearly half -- 49% -- said Apple Watch in early Even so, the starting price they haven't bought a 2016 because they wanted tag of $369 shows a "real smartwatch because they to see the next version. disconnect between the are "waiting for the prices Even so, Apple isn't company and potential of existing smartwatches planning to release how buyers," Petro said. "Price to come down." early sales have gone. is a major factor in smartwatch purchase Most want a price of "The smartwatch gold decisions." less than $200, according rush for consumers [of to First Insight, which 2014] appears to be over," The survey also found 1 Smartwatches are big, pricey -- and ugly By Matt Hamblen for COMPUTERWORLD September 20, 2016 that 75% of women and company noted that even manufacturers have a long nearly 60% of men want if a consumer has positive way to go to create to pay $200 or less for a sentiments about a devices that consumers smartwatch, well below smartwatch, that alone actually want," the report the $369 for the Series 2. doesn't determine whether said. the product will sell. While some potential The Apple Watch (with buyers found various First Insight noted in its a First Insight value score smartwatches to be "cool, smartwatch report that of 7) was compared with sleek or beautiful," more "Apple has a lot of work the Motorola Moto 360 often they used words like to do, and isn't the only (score of 5), Citizen Men's "ugly, bulky and big." one." The original Apple AT7030-05E Proximity In various surveys, Watch did the best of six Eco-Drive (score of 3), women often complain smartwatches on a number Garmin Fenix 3 Sapphire about smartwatches being of factors rated by (score of 3), LG Watch too large, but a segment of consumers, but still ranked Urbane, 2d edition (score female buyers has also only a "less than of 3) and the Garmin been attracted to oversized impressive" seven out of Fenix 3 Hour (score of 3). fashion watches in recent 10, below the eight or years, Petro said. In the higher ranking that First First Insight didn't First Insight survey, about Insight believes is needed include any Samsung 70% of the respondents to bring a product to smartwatches in the group, were women. market. even though Samsung made it to market with a First Insight said that "These relatively low smartwatch before the first the value of a smartwatch scores, paired with the fact Apple Watch and has is more important than that nearly 70% of produced several models. design alone, and if the consumers currently don't Petro said Samsung wasn't price is right or wrong, it own a smartwatch and excluded for any specific is the biggest variable that 33% of consumers don't reason. None of the will influence a buyer's plan on purchasing one, vendors paid to have the decision to buy. The prove that smartwatch survey condcuted, 2 Smartwatches are big, pricey -- and ugly By Matt Hamblen for COMPUTERWORLD September 20, 2016 including Samsung. be interested in the same Petro said smartwatch features and makers need to recognize With more than 250 functionalities. ... the sticker shock that smartwatch vendors, Petro Smartwatch manufacturers buyers have and then said First Insight picked a can benefit from getting to "engineer the features sampling for its survey know the different within that price point." that represented a "cross- personas [of smartwatch section representative of buyers] and what they For Apple, with one the market." In fact, he want from their devices. ... iconic Apple Watch said brand was found not This is not a one-size-fits- design, the challenge to to be a major concern of all market opportunity." come up with different buyers; only 8% of those designs could be difficult. surveyed said brand First Insight asked "It's apparent if you look mattered. At the outset, respondents various at Apple designs in the "our question was, why questions to find out what [iPhone and the Macbook] are smartwatches not their watch style says that there are aesthetics generally hitting the mark about them, then that are consistent," he in the industry after they segmented the respondents said. "It's apparent in the came out with such a big into seven groups with data that consumers want bang?" various labels. Here's how choices, and that may they were ultimately mean taking input from Based on its findings, segmented: bohemian, consumers around design First Insight's advice to 24%; fashion icon, 21%; and then determining how smartwatch makers was spy, 13%; traveler, 11%; many designs Apple wants direct: "As the smartwatch banker, 11%; daredevil, to create." industry continues to face 10%; entrepreneur, 10%. a steep decline, it's time The smartwatch survey for watch retailers to pay The items considered confirmed that one of the more attention to their most important to those biggest trends in retail varying target audiences, surveyed were features markets today is that understanding that their and functionality, at 37%, technology and fashion entire customer base won't followed by price, at 25%. are linked. 3 Smartwatches are big, pricey -- and ugly By Matt Hamblen for COMPUTERWORLD September 20, 2016 online survey of 3,550 must run third-party apps "Consumers are U.S. adults, ages 18 to 74, on the device; and it must segmenting themselves 12% said they currently has a watch face or a faster than retail use a smartwatch. default watch screen. That companies can means IDC would not understand," Petro said. Gartner's numbers are include in the smartwatch "The reality is that there more than double what category a Fitbit Blaze are so many fragmented IDC is forecasting for wearable or those by segments of women that smartwatch shipments for Withings, which can tech organizations need to all of 2016. IDC recently connect to a phone, but get as part of their design said that a total of 20.1 don't run third-party apps. more product input from million smartwatches will them." ship in 2016, up slightly Gartner's definition from the 19.3 million that doesn't restrict the Other views on the shipped in 2015. IDC category of smartwatches smartwatch market hasn't published its 2017 to those that run third- Analysts such as forecast, but has said the party apps on the device. Angela McIntyre at market will reach 54.6 Here's the full Gartner Gartner and Jitesh Ubrani million units shipped in definition: "Smartwatches at IDC have taken note of 2020, a number still below are electronic devices with the market's what Gartner predicts for a primary function of disillusionment with 2017. receiving electronic smartwatches. communications (for Gartner includes more example, caller alerts, Even so, Gartner categories of devices in its texts or voice calls). They predicts nearly 43 million definition of smartwatches provide a two-way smartwatches will ship in than does IDC. Ubrani connection via Bluetooth 2016, up from 30 million said IDC has limited its to a mobile connectivity in 2015, and that 58.6 definition of smartwatches hub (for example, a million will ship in 2017. to three essentials: It must smartphone), or via look like a wristwatch and cellular baseband or Wi- In a recent Gartner not only a wristband; it Fi. Smartwatches, which 4 Smartwatches are big, pricey -- and ugly By Matt Hamblen for COMPUTERWORLD September 20, 2016 must display the time, offer variety in the designs expanding the overall have a glanceable display; and the functions of their watch market size. They however, the watch face devices. McIntyre said are doing pretty well with does not have to be digital. Fossil offers three basic the watches they have Smartwatches must also types of smartwatches, now. They want to get it enable the wearer to and there are 118 right. Fossil and others are transmit an electronic variations of the Fossil Q taking a wait-and-see signal from the watch (for brand on the company attitude." example, to control an website, with several external app or device, or priced near $200 and to transmit voice, an several others in the $300 emergency signal or range.
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