Market research institute IDC recently released the "China Wearable Device Market Quarterly Tracking Report (Q4 2017)", showing that China's wearable device market shipments in the fourth quarter of 2017 were 15.21 million units, up 22.1% year-on-year. . Among them, basic wearable devices (wearable devices that do not support third-party applications) increased by 11.1% year-on-year, while smart wearable devices increased by 161.8% year-on-year.
The sharp increase comes from the rapid growth of the children's watch market, as well as the new products of Apple Watch. The 4G smart watches (except children's watches), which are the focus of the market, saw shipment growth of 93.9%.
According to the People's Post and Telecommunications Report, in the fourth quarter of 2017, although Xiaomi decreased compared with the same period of last year, it still achieved a 37.4% growth rate, driven by the promotion activities at the end of the year, ranking first; Huawei and its brand glory Ranked second in the rankings, among which the cost-effective sports bracelet series provides a strong guarantee for its stable shipments; BBK's small genius is basically the same as the average market growth rate, while stabilizing its market share, the product The line gradually transitioned from the 2G market to the 4G market; Qihoo 360 and Sogou were ranked fourth and fifth respectively by the strong promotion of online promotion activities at the end of the year.
The IDC report pointed out that 4G smart watches (except children's watches) are the focus of the market. Since the launch of the second generation of smart watches in 2017, 4G smart watches (except children's watches) have grown steadily quarter by quarter. The quarter was driven by Apple's third-generation smartwatch, and the market grew significantly. It is expected to maintain rapid growth in the future. The reasons are mainly the following three points:
First, the operator business model innovation will help the rapid growth of 4G smart watches. 4G smart watches are subject to volume, and some adopt eSIM card solutions to replace physical SIM cards. The promotion of this solution is inseparable from the operator's optimization in user handling and usage experience. Recently, China Unicom launched a “one-card dual-terminal†service in some pilot cities. The eSIM card is used to bind mobile phone numbers and share tariff packages, making Apple’s third-generation watch capable of supporting independent communication functions in some areas. It will not only promote the sales of Apple Watches, but also provide more space for the development of smart watches in other 4G fields such as Huawei.
Second, channel sinking will provide more market opportunities for the growth of 4G smart watches. In the fourth quarter of 2017, the retail channel sales of smart watches accounted for 44.3%, an increase of 9.4% year-on-year. Among them, 4G smart watches not only have advantages in profit margin, but also are more likely to be generated to consumers in the experiential purchase process. Attractive. With the rapid increase in purchasing power in third- and fourth-tier cities and even rural areas, the channel sinks deeper and deeper, and 4G smart watches will open up broader market opportunities besides consumers in large and medium-sized cities.
Third, diversification of consumer demand will prompt 4G smart watches to generate more application scenarios. At present, 4G smart watches mainly meet the needs of consumers in communication and some multimedia functions. With more and more third-party software development and data access, 4G smart watches will play a more independent role in sports, health and service applications.
“4G will become one of the important development directions of smart watches.†Pan Xuefei, an analyst at IDC China, believes that the training of this market requires both the support of operators' business policies and the flexible and comprehensive channel strategy to expand the larger commercial space. In addition, the diversified consumer demand generated by the mobile Internet will also stimulate the deeper use value of 4G smart watches.
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