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Wearables not just about hardware

Editorial
article image WEARABLE devices cannot compete on hardware alone, says TrendForce, but on the wider eco-system of apps and services.

WEARABLE devices cannot compete on hardware alone, says TrendForce, but on the wider eco-system of apps and services.

According to TrendForce its projections show that the Apple Watch has experienced strong demand that supply is not keeping up with. In 2015, shipments of Apple Watch are expected to reach 15 million sets.

But TrendForce says greater success will depend on the performance of the entire supply chain in the second half of 2015, urging a focus not just on the hardware sales, but also profits generated from the watch’s application and services.

New hardware devices like the Apple watch will change consumers’ behaviours and create new revenue sources, says TrendForce.

As wearable devices become more accessible and influential in the daily lives of consumers, device vendors will find new opportunities from users’ behaviour, whether it’s for boarding planes, unlocking hotel rooms, or using it to pay for goods and services.

Going forward, the contest among rival device vendors will not be about having the best hardware, but rather application, of which mobile payment is just one opportunity.

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