Samsung is regarded as the leader in not just the smartphone category but also in the smartwatch sector with 78 percent of the total revenue coming from the Korean tech giant.
Samsung, the leader in global smartphone market, is adding another category to its dominance- wearables. Research analytics firm NPD reveals that Samsung smartwatches cornered the major revenues generated in the smartwatch market. The analysis by NPD Group showed that Samsung and Pebble together accounted for more than 90 percent of the smartwatch sales in the United States since October 2013.
Smartwatches may not be the best replacement for smartphones, but consumers are adopting this wearable trend. Several tech giants including Samsung and few startups such as Pebble have taken the smartwatch craze to a whole new level, promising a continuous growth in 2014. Since the debut of smartwatches in October 2013, Samsung and Pebble have managed to secure a large chunk of the consumer base with their budget-friendly, feature-packed gadgets. Total revenue generated with the sales of smartwatches in the US since October has totaled $96 million, which is impressive considering the slow start.
Samsung had to face some early hurdles for its Galaxy Gear smartwatch, which was criticized for its low battery life. Pebble, on the other hand, won several hearts with its budget-friendly smartwatch that also offered impressive features and lasting battery. Other competitors joined the race such as Qualcomm,ZTE and most recently LG and Motorola. More reputed companies such as Apple and Microsoft are likely to join the bandwagon soon.
Though wearables aren't entirely new to the market, but smartwatches contributed vastly in pushing this sluggish category. With multiple brands offering smartwatches, people around the world learnt of the existence of wearables.
In a separate study on wearable technology by NPD Group, 20 percent consumers said they were interested in buying a smartwatch and most of them comprised of the younger age group. Thirty percent of the 16-24-year olds werer interested in buying a smartwatch and a quarter of 25-34 year olds shared the same interest. But among all age groups, the price of the gadgets was the biggest barrier.
"We've seen smartwatches become more affordable as manufacturers eye the opportunity to add them to smartphone purchases almost as an accessory" Ben Arnold, executive director of industry analysis at NPD, said in a press statement, last week. "Like any new product category, the overall ASP on these devices will decline as the market becomes more diverse with budget, mid-level, and premium product offerings."
The continuous growth of smartwatch industry will call up on more manufacturers to join the race and fight for dominance with more features offered in competitive prices.
