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Wearable device spending will reach 80 billion US dollars, count the winners on this track

News posted on: 2021/1/21 13:45:21 - by - RFIDtagworld XMINNOV RFID Tag Manufacturer

Wearable device spending will reach 80 billion US dollars, count the winners on this track

Wearable device spending will reach 80 billion US dollars, count the winners on this track


In recent years, consumers have maintained strong demand for wearable devices such as smart watches and wearable headsets, which has brought about a thriving development trend of the global wearable device industry. This is due to the fact that smart watches can be used independently of mobile phones and various wearable devices have been added to management applications such as health, which has promoted the rapid growth of the industry. The latest data forecast from authoritative research organization Gartner shows that consumer spending on wearable devices will reach US$81.5 billion (over 520 billion yuan) in 2021, an increase of 18.1% from US$69 billion in 2020.


"Consumers' growing demand for personal health provides a major opportunity for the wearable device market," said Ranjit Atwal, senior research director at Gartner. As consumers rely on these devices for remote work, fitness activities, health tracking, etc., the growth of wearable devices and smart watches is particularly strong, especially ear-worn devices are favored. According to Gartner data, in 2020, ear-worn equipment spending will reach 32.7 billion U.S. dollars, an increase of 124% over the previous year, and it is expected to reach 39.2 billion U.S. dollars by 2021. In addition, smart watches are also performing strongly, with the market size expected to reach US$25.8 billion this year.


Despite the huge scale of the wearable market, combined with other authoritative research institutions, it shows that the global wearable device market is mainly concentrated in the hands of a few players. Among them, the five major manufacturers of Apple, Xiaomi, Samsung, Huawei and Fitbit account for nearly 70% of the global market share. According to the wearable device market report released by IDC in the third quarter of 2020, the five major manufacturers have a cumulative share of 69%. In the quarter, Apple ranked first in the industry with 41.4 million shipments, accounting for one-third of the global wearable device market.


Apple’s wearable device shipments are the total of the three giants Huawei, Xiaomi, and Samsung. It can be seen that Apple leads the global wearable device market. "Due to the strong demand for wearable devices driven by service changes, Apple Watch is the world's best-selling smartwatch and the indicator of global smartwatch development. The AirPodsPro with noise reduction function was once sold out of stock globally." Yang Jianyong, senior consultant of the Internet of Things Said. And pointed out that Apple occupies more than 40% of the global TWS headset market. In addition, combined with the financial report, wearable devices are the most beautiful growth sector for Apple.


In fiscal 2020, the revenue of other sectors composed of wearable devices such as AirPods and Apple Watch, and smart homes will reach US$30.6 billion (approximately 200 billion yuan), a year-on-year increase of 25% compared to the previous fiscal year. Wearable devices are expected to become Apple. One of the new cash tree sectors. The Apple Watch, which is favored by global fruit fans, is mainly due to its rich health and medical management. In particular, the new generation of Apple Watch Series 6 has gone further on the basis of the previous generation of health functions. It has introduced new functions that allow users to measure blood oxygen saturation for better To grasp their own overall health.


On the whole, Apple Smart Watch is not limited to a piece of smart hardware, but a healthy living device, and it is praised for saving lives. AirPods is the most popular wireless headset in the world. With strong global demand for wearable AirPods and Apple Watch, wearable devices have shown rapid growth.


At the same time, consumers have strong demand for smart products such as iPhone, AirPods and Apple Watch, making revenue and profits still maintain steady growth. In fiscal 2020, revenue increased by 5% to US$274.5 billion (approximately RMB 1.8 trillion), and net profit increased by 3.9% year-on-year to US$57.4 billion (approximately RMB 380 billion). It also promotes continuous record-setting in the capital market, with a market value of up to 2.15 trillion US dollars (RMB 13.9 trillion) as of today.


However, Apple will face strong competition from Google in the global market. After Google acquired the wearable device manufacturer Fitbit for US$2.1 billion, it entered the wearable device industry again. For Google, it will use Fitbit's market position and health management platform to further develop Google's health care business and have the strength to challenge Apple. In the domestic market, Huawei and Xiaomi are the leading manufacturers, especially Huawei's crown in the domestic market.


According to IDC's wearable device market tracking report, my country's wearable device shipments in the third quarter of 2020 were 32.93 million units, an increase of 15% over the same period last year. The top three vendors are Huawei, Xiaomi and Apple. Huawei mainly benefited from the strong performance of smart bracelets and smart watches, which led to rapid growth of wearable devices. In the quarter, shipments of Huawei series of wearable devices increased by 60% year-on-year to 9.41 million units, ranking first in the industry.


For Xiaomi, despite its high cost performance to seize the market, in the face of strong competitors such as Huawei, the Xiaomi series of wearable devices fell by 7.7% year-on-year to 7.24 million units in the quarter, and its market share dropped from 27.5% in the third quarter of 2019 to 22. %, relegated to second place. However, in the global market, Xiaomi still squeezed Huawei. Because of its continued efforts in overseas markets, the market ranked second in the world.


Finally, wearable devices with wearable earphones, smart bracelets, and smart watches as the core have become consumer electronics technology hotspots and continue to maintain rapid growth. With the accelerated arrival of 5G, the integration of artificial intelligence, life and health, and big data will bring new technology and health experience to users, which is expected to change the competitive landscape of existing wearable device manufacturers.


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