By Kim Yoo-chul
Samsung's Gear S |
Microsoft's wearable device Band |
LG's Watch R |
The companies are wrestling joined to reign in the post-smartphone era.
On top of Samsung Electronics which has already unveiled a series of smartwach models, non-hardware companies such as Google, Microsoft and Qualcomm are also increasing their investment in wearable devices.
"This is a wholly-new market. The wearable market has huge growth potential because a wearable device is more about platform and services, rather than just a simple product," said a Samsung Electronics official.
Samsung will put greater focus on wearable devices because the smartphone market is already crowded and there is no longer any guarantee of higher margin hits according to the popularity of low-cost devices, he said.
The company expects smartwatches and other wearable devices to create bigger sales on growing demand.
Its latest smartwatch Gear S allows the user to check texts and receive calls regardless of distances as key functions are materialized within wireless networks not Bluetooth connector.
With a curved rectangular OLED screen, the Gear S has 3G, WiFi and Bluetooth connectivity, and remain powered for two days on a single charge.
It started selling Gear S at home from Nov. 5, in the United States and United Kingdom from Nov. 7.
LG Electronics also seeks to expand its presence in the smartwatch market.
Its Watch R bears the closest resemblance to an actual timepiece. The round-faced smartwatch, powered by Google's Android Wear, also has function of heart monitoring and step-tracking features. On a single charge, it can last for up to three days.
The market for health-tracking band and other wearable devices is expected to rise to 373 million units by 2020 from this year's estimated 15 million units.
PwC said in its report; "For wearables to be most valuable to the consumer, it needs to embrace Internet of Things opportunities; transform big data into super data that not only culls, but also interprets information to deliver insights; and take a human-centered design approach, creating a simplified user experience and an easier means to achieve goals."
To become a leader in the war for the future of the wrist worn devices, hardware makers and software providers are expanding collaboration.
"Platform providers want to widen their own ecosystems and therefore they need hardware companies, which have good track records in manufacturing in terms of the product quality," an LG Electronics official said.
Google has advanced into the wearable market to strengthen its Android ecosystem.
Apple also plans to launch its first wearable device soon to widen the base of its iOS mobile platform.
Microsoft has begun selling its wearable device in the United States. The rubber bracelet contains a display showing text messages from a cellphojne, Facebook alerts and sensors on the device will track heart rate and calories burned.
MS plans to roll out more variants next year to pursue the "multi-platform" strategy as its wearable supports Windows, iOS and Google Android.
Samsung is in talks with major enterprise platform providers to put their healthcare platform into Samsung wearable devices.
LG is also partnering with leading healthcare platform companies as part of its plan to better respond with the growing demand for wearable devices and the Internet of Things.
Deborah Bothun, a PwC analyst, says; "Businesses must evolve their existing mobile-first strategy to include the wearable revolution and deliver perceived value to consumers in an experiential manner. Relevance is the baseline but then there is a consumer list of requirements to enable interaction with the brand in a mobile and wearable environment."