Cantor: Wearables now a 'legitimate' product category, but only an Apple 'iWatch' would drive sales
While the glut of wearable devices introduced at this year's Consumer Electronics Show signals that companies hope to tap into the emerging market, analyst Brian White of Cantor Fitzgerald doesn't expect that sales will reach a "meaningful" level until Apple decides to enter the space with its rumored "iWatch."
This year's CES proved that wearable devices have become a "legitimate, new product category," White said in a note to investors on Monday, a copy of which was provided to AppleInsider. He noted that most of the new accessories introduced this week were focused on the wrist, whether they were smart watches, fitness sensors, or both.
Apple Chief Executive Tim Cook offered some general comments on the emerging wearable device market last year, when he said he believes the space is "ripe for exploration." Cook panned Google Glass, a wearable head-mounted display, but praised Nike's wrist-worn FuelBand, and suggested the wrist may be a more natural location to place a wearable device.
Those comments only helped to fuel speculation that Apple is working on a wrist-worn accessory, one that is expected to focus on biometrics and health feedback. In a rare public move, Apple has even openly filed for ownership of the "iWatch" trademark in a number of countries around the world.
Count White among those who expects Apple to release a so-called "iWatch" at some point. In his eyes, sales of wearable devices won't see "meaningful adoption" until Apple decides to enter the market.
AppleInsider took a look at a number of wearable devices at CES last week. Perhaps most notable was Pebble's new Steel smart watch, a high-end model from the company that made a splash in 2013 with the launch of its highly successful smartphone-connected wrist accessory.
Other wrist-bound products showcased at this year's CES were the Meta smart watch, Magellan sports watch, LG's Lifeband Touch wristband, and a trio of new watches coming later this year from Archos. Beyond the wrist, wearable, iOS-compatible devices at this year's show included heads-up displays for sports from Recon Instruments, and the clip-on lifeblogging Narrative camera.
This year's CES proved that wearable devices have become a "legitimate, new product category," White said in a note to investors on Monday, a copy of which was provided to AppleInsider. He noted that most of the new accessories introduced this week were focused on the wrist, whether they were smart watches, fitness sensors, or both.
Apple Chief Executive Tim Cook offered some general comments on the emerging wearable device market last year, when he said he believes the space is "ripe for exploration." Cook panned Google Glass, a wearable head-mounted display, but praised Nike's wrist-worn FuelBand, and suggested the wrist may be a more natural location to place a wearable device.
Those comments only helped to fuel speculation that Apple is working on a wrist-worn accessory, one that is expected to focus on biometrics and health feedback. In a rare public move, Apple has even openly filed for ownership of the "iWatch" trademark in a number of countries around the world.
Count White among those who expects Apple to release a so-called "iWatch" at some point. In his eyes, sales of wearable devices won't see "meaningful adoption" until Apple decides to enter the market.
AppleInsider took a look at a number of wearable devices at CES last week. Perhaps most notable was Pebble's new Steel smart watch, a high-end model from the company that made a splash in 2013 with the launch of its highly successful smartphone-connected wrist accessory.
Other wrist-bound products showcased at this year's CES were the Meta smart watch, Magellan sports watch, LG's Lifeband Touch wristband, and a trio of new watches coming later this year from Archos. Beyond the wrist, wearable, iOS-compatible devices at this year's show included heads-up displays for sports from Recon Instruments, and the clip-on lifeblogging Narrative camera.
Comments
That all depends on how you define what exactly that statement means. Aran sweaters are a legit product category, but they aren't an interesting one. Even if I did personally buy a lovely one 2 weeks ago :-). That's where wearables are at this point. Just one more ANALyst playing the guessing game. His wife probably owns AAPL.
I personally think we need new laws to prevent corruption on Wall St. I don't think people that hold a certain number of shares like Icahn should be allowed make stock relates posts on public forums like Twitter, TV, publications like NYT, WSJ or anywhere else. The temptation to mislead, control or corrupt for financial gain at that point is far too tempting. The whole game needs to be rewritten if the human race is to evolve to something more meaningful.
http://tech.fortune.cnn.com/2012/11/09/apple-its-mojo-and-doug-kass/
Stupid analyst.
Anyone remember the wristwatch calculator, enough said on that topic.
For anyone who has tracked CES over all the years know that there are many products shown off here which never see the light of day, well they saw some day light before they hit the shredder. Most stupid product are shown off at CES than actually product that had any sort of real life application. This maybe the reason Apple and now MS has chosen to stay away from CES. Why show off your product at a product land fill.
That's funny - because there are these things called wristwatches, which last time I looked were a 'legitimate' product category, and date as far back as the 16th century. I used to have one at school in the 1980's and it even had a calculator on it!
Stupid analyst.
LOL. You're right.
Which is why I find laughable when people state concerns about Apple falling behind the competition. I remember Motorola overly hyping a phone that it never released.
This is a lame idea, even if Apple does eventually do it.
Apple created a category it didn't even say it was going to participate in. See how amazing Apple is!
This is a lame idea, even if Apple does eventually do it.
And you'll be the first person in line to buy one once Apple does release one too. People like you do this all the time.
That's funny - because there are these things called wristwatches, which last time I looked were a 'legitimate' product category, and date as far back as the 16th century. I used to have one at school in the 1980's and it even had a calculator on it!
Stupid analyst.
Yep, I was a navigator in the U.S. Navy in the late 70's early 80's and bought a Casio calculator watch ($80) and it was one the handiest things I ever owned. At the time.
The most accurate form of Navigation (pre-GPS) was, Piloting. That's where you take sights of three lighthouses while steaming along the coast and plot them on your chart to get your position.
Celestial navigation (Sextant) is used when you're out of sight of land and too far for radar. But when out at sea there was really no way to see if you were within 1 mile of your fix or 6 miles.
When we were along the coast, I used to shoot stars and two hours of math later, I would plot my Celestial fix on the chart and compare to the more accurate Piloting position fix. I could get it under a mile, which is pretty cool.
The week I left the Navy (Feb 7th, 1981), we got our first GPS unit (SatNav) for the Chart House. It was the size of a huge microwave oven. It was so accurate, you could plot your position as you swung around your anchor chain.
Now GPS is in the iPhone or in a watch.
Just amazing and no need to shoot the stars anymore!
Brought back some memories, Mobius. Thx.
Best.
The problem with the iWatch is named Samsung. Apple know how much technology Samsung is able to pour in his future Galaxy Gear watch, and Apple know that Apple can't beat Samsung to this game. So they are waiting for marketing ideas like they had for the iPhone: 64 bit and fingerprint. Useless for most users but two very strong marketing tools. That's what iWatch need and wait for becoming alive.
Galaxy Gear Watch is a total flop...who are you kidding! Just because they (Samsung) were first, doesn't mean they're better. Apple is typically never first, but almost always better. Samsung rush this poorly designed watch out just to beat Apple. I seriously doubt they have plans other than to try and improve what people are complaining about it the watch itself. As soon as Apple releases one (if they even do) and it has all of these amazing features, they'll be scrambling to copy it just like they did with their phones and tablets.
And when Apple makes it real, it will have the beauty and wearability of a Rolex watch. People will want to wear it unlike the dregs that are here today.
Apple has always looked at a product category and asked if they can come up with something better. If not, then they don't enter that category or only create a hobby product if there is enough interest and the ability to create a great product.
There are a lot of engineering limitations that prevent an iWatch from being just as great as a Rolex. This is why we only have crapp in the market.
The "flop" your talking about is making the Los Angeles Times news
"BMW i3 takes commands from a Galaxy Gear smartwatch"
Not bad for a "flop".
If Galaxy Gear watch was from Apple you would say "biggest thing since the invention of the wheel"
When Apple does something, back the f*** up b**** cause Apple ain't playing!!!!
Pebble, that bs from Samsung can all take a long walk off a short pier.
iWatch will cut the heads off of so many traditional watches. Watch the folks at Casio have a CEO shake up. Just like the iPhone 1st gen destroyed everything in Nokia's bag of gimmicks(like 400 plus damn phones) the iWatch will crush the sh** out of the traditional watch.
2014 ia going to be a battle royal!
The "flop" your talking about is making the Los Angeles Times news
"BMW i3 takes commands from a Galaxy Gear smartwatch"
Not bad for a "flop".
If Galaxy Gear watch was from Apple you would say "biggest thing since the invention of the wheel"
I could care less about what accepts commands. This means nothing if nobody buys the watch. Sales and most importantly, features are what makes a product great. Samsung's smart watch has none of this. Its overpriced, has very little features and people are still confused as to why they'd want one.
Apple wouldn't make a watch that would make people think, why do I need one? They would make a watch that would make people want one. There's a big difference.
In other words without Apple to copy the market is weak and poor sort of like ultra books, tablets, and smart phones were. But Apple has an innovation problem or rather industry has an innovation problem without Apple to copy.
In other words, without a product for Apple to champion and innovate with, and other companies to copy -- whereby pundits and platform acolytes can say "it's nothing original" and "Apple is doomed" -- there is no market for Apple to be failing at.
Without Apple around to dominate and thereby lose, apparently there is no new market category.