Wearable devices aim to get a grip

Updated: 2014-10-02 07:33

By Gao Yuan(China Daily)

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Tech-savvy customers attached to new gadgets, Gao Yuan reports.

If you are not sure how quickly technology changes people's lives, look at the cellphone you are using.

Many of us can hardly imagine a life without a handset nowadays, although as recently as 20 years ago, phones could do only one thing - call each other.

 Wearable devices aim to get a grip

Two visitors check wearable electronic devices at an information technology expo in Shenzhen. Wearable devices, a new "cool" thing - just as smartphones were some years ago - are eagerly welcoming Chinese people to try them on. Provided to China Daily

Now people simply cannot leave their smartphones for even a half-hour. Technology dependency has fundamentally changed the way people manage their daily lives.

Just as we are getting used to life with smartphones, technology cannot wait to attach more devices to our body - even closer this time. Tech is targeting your wrist - and, in some cases, your eyes as well.

Wearable devices, a new "cool" thing - just as smartphones were a few years back - are eagerly welcoming people to try them on.

Some customers are already "prisoners" of this new technology because once one has a wearable on the body, the device becomes addictive and hard to take off.

According to Canalys, an industry researcher, wearable-band shipments will reach 43.2 million units in 2015, representing a 129 percent year-on-year growth.

China is among the most quickly growing wearable markets in the world.

According to local research company Analysys International, turnover of the Chinese wearable device market is set to hit 2.2 billion yuan ($358 million) this year, up from only 900 million yuan in 2013.

Apple Inc will be the biggest driver behind wearable band shipments in 2015.

"By creating a new user interface tailored to its tiny display, Apple has produced a smart watch that mass-market consumers will actually want to wear," said Daniel Matte, a Canalys analyst.

Wearable devices aim to get a grip

"The sleek software, variety of designs and reasonable entry price make for a compelling new product. Apple must still prove, however, that the final product will deliver adequate battery life for consumers."

Industry insiders segment the wearable market into "smart bands", which are capable of running third-party applications, and "basic bands", which are not.

Many market observers have asked why consumers would want a smart band at all, demanding compelling-use cases.

Seeking to address these concerns about its new wearable, Apple has demonstrated a variety of use cases across health and fitness, personal communication and other areas, including mapping for walking navigation, workout and activity tracking, and mobile payments.

Meanwhile, low-cost Chinese vendors are increasingly playing a role in the market for wearable bands. Xiaomi Corp has attempted to dramatically lower the price of basic bands with its Mi Band.

Xiaomi's band sells at 79 yuan each, one of the cheapest products from mainstream vendors.

Analysts believe Android Wear, an operating system designed by Google for smart watches and other wearables, will quickly increase its market share once it enters China. Most of the nation's hardware makers are using the Android system.

Google Inc must greatly improve its wearable platform over the coming years to better compete with Apple's new offerings. Wearable bands from all vendors are trying to deliver a clearer value to consumers beyond the existing capabilities of smartphones in order to lure buyers to buy an additional device.

Huawei Technologies Co Ltd, a Shenzhen, Guangdong province-based telecom equipment maker, has released its very own wearable - a fitness-focused band called the Huawei Talkband B1. The company hopes the waterproof, dust-resistant device will attract buyers who love outdoor activities.

Its near field communication and Bluetooth capabilities also enable the band to be constantly connected with the smartphones the owner is using.

"Eventually, however, stronger smart band competitors to the Apple Watch will likely emerge and push smart band pricing down, threatening the basic bands. This market will undergo disruption similar to that suffered by feature phones when smartphone prices fell," said Chris Jones, vice-president and principal analyst of Canalys.

"The basic band vendors, such as Fitbit and Jawbone, will enjoy the advantages of their lower pricing for the immediate future," Jones said.

The first wearable that caught the world's attention was Google Glass, a conceptual product developed by online search provider Google. Because of the product's high price and slow pace in building application stores, a number of Chinese vendors are launching Google Glass opponents this year.

Baidu Inc, the world's largest Chinese-language search-engine provider, unveiled its very first wearable device in early September. Baidu Eye, similar to Google Glass, has a built-in camera that can recognize a number of products and provide item information via an earpiece or smartphone.

Although the hardware does not include a display like the one on Google Glass, Baidu obviously has high hopes to the device.

"This is like an extension of your eye, a third eye or second brain," said Gu Jiawei, the designer of Baidu Eye. "For our company, the shopping mall is the most attractive business scenario. Consumers will be able to see detailed product information and get online comments with the help of this gadget."

Lenovo Group Ltd, a company best known for personal-computer and laptop products, is also navigating its way into the wearable-devices market.

Lenovo teamed up with Vuzix, a US smart glasses manufacturer, to bring the M100 Smart Glasses to the Chinese market.

Targeting high-end Chinese consumers, the glasses will be co-branded and will include mapping, voice recognition, Mandarin, and local cloud services.

Vuzix CEO Paul Travers said China is a significant milestone both for the US company and for the wearable industry.

He eyes a deeper partnership with the Chinese company, saying Lenovo's global channel networks will help Vuzix sell Smart Glasses outside China.

Chen Xudong, senior vice-president of Lenovo, explained why Lenovo chose to roll out wearables with partners instead of developing its own products.

"We cannot make all the products even though we know some of the devices are clearly profitable," Chen said, adding that the startups in the "Internet of things" sector will help Lenovo to build a market and simultaneously enjoy returns.

Lenovo is planning to buy in shares or set up joint ventures with global startups in order to introduce more wearable devices and wirelessly connected products, challenging Apple and Samsung Electronics Co.

Contact the writer at gaoyuan@chinadaily.com.cn

Wearable devices aim to get a grip

Wearable devices aim to get a grip

(China Daily 10/02/2014 page7)