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Press Release


TrendForce Says a Wearable Device’s Competitive Edge Lies in Service-Related Opportunities

Friday , 05 / 22 / 2015 [ Analysts: Jason Tsai ]

The supply of Apple Watch have not kept up with the strong demand since its preorder sale earlier this year. According to the latest projection by Topology, a division of TrendForce, the 2015 shipments of Apple Watch are expected to reach 15 million sets. On the other hand, going above this shipment figure will depend on the performance of the entire supply chain in the second half of 2015. “Apple is widely recognized for its success in selling its smartwatches as hardware,” said Jason Tsai, TrendForce’s wearable device analyst, “but the more important matter coming out this Apple Watch craze will be the profits generated from the watch’s application and services.”  

“The watch is a springboard from which Apple will change consumers’ behaviors and create new revenue sources,” Tsai added. 

As wearable devices become more accessible and influential in the daily lives of consumers, device vendors area not only able to deliver unique values to their products but also find opportunities from users’ behaviors. Apple Watch, for instance, is great for travel as people can use it to board planes and unlock hotel rooms. “Next to iPhone 6, Apple Watch is another device through which Apple Pay can be widely adopted,” Tsai also noted. “Apple Watch will enjoy greater usage by consumers and attracts non-iPhone users if it makes Apple Pay more convenient.” Apple’s competitors Xiaomi has also recently entered the mobile payment industry through wearable devices, and more device vendors are expected to follow their lead. 

Going forward, the contest among rival device vendors will not be mainly about having the best hardware. Instead, vendors are betting on application as a way to gain footholds in different application markets. Tsai pointed out that while mobile payment right now is a hot application for wearable devices, other profitable fields are emerging, such as market survey and risk assessment for insurance. Products and services related to these opportunities will eventually displace specs as the center of contention. 

  

TrendForce, Taipei Computer Association, and TechNews proudly present Compuforum 2015 on June 5, during the week of Computex Taipei 2015, at the 4th floor VIP room of the Taipei International Convention Center. This year seminar, titled “The Future of Mobile Devices: Key Components and Communication Technology”, will feature the latest industry research by top analysts from TrendForce’s research divisions – DRAMeXchange, WitsView, and Topology. Honored guest speakers from global tech giants SanDisk, Qualcomm, ARM, Intel, and Broadcom will also be there to share their thoughts with the attendees on the latest trends and future development in mobile solutions. Topics that will be discussed at the forum include chips, memory, display panel, wireless communication, and wearable devices.  

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