Skip to main content

Demand Volatility in the Consumer Wearables Market

Over the last 18 months, the wearables market has started to mature and has grown considerably with new players introducing numerous products -- such as fitness bands, smartwatches, smart glasses, and other sensor-enabled devices.

Using data compiled from approximately 328,000 consumer reviews since January 2014, the latest market study by Argus Insights reveals that after the holiday season of 2013, consumers briefly lost interest in wearables before steadily increasing demand reached its high point in January 2015 where it was four times the level of a year earlier.

Since then, however, demand has slowed.

According to the report, all the media buzz about the Apple Watch introduction stole consumer interest away from Fitbit and other wearables, as potential buyers waited to determine whether they wanted the Apple Watch.

Interest in Fitbit devices resumed and grew once the Apple Watch details were announced, as Fitbit and other wearable manufacturers saw a strong 2014 holiday period. Since their IPO, Fitbit has continued to gain mind-share with more stakeholders in the marketplace.


Consumer delight -- measured from the volume and the content of consumer reviews -- showed that Fitbit was achieving a very high level of buzz, though the satisfaction of their consumers is dropping while Apple is quickly gaining in delight.

Other surprising insights include high consumer delight scores for smartwatch manufacturers Motorola and LG, as more consumers report their satisfaction from smartwatches than from fitness bands.

"Our analysis of review volume for the wearables market correlates directly with unit sales volume, and we have seen a significant slowing in consumer demand for both wearables in general and fitness bands in particular," said John Feland, CEO and founder, Argus Insights.

Consumers expect their wearable device to do more than simply count steps, just as they expect to do more than just make phone calls with their smartphone.

Mr. Feland believes it's clear that as the Apple Watch, the Moto 360 and the LG Watch Urbane outperform fitness bands in the hearts of consumers. Fitbit and others in this category will need to add more to their offerings to keep consumers engaged and coming back for more.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of