Wearables could trigger a consumer tech-spending spree
The latest data from the Consumer Electronics Association (CEA) suggests the US public's confidence in the economy and willingness to splash out on new devices may have been piqued by smartwatches.
Despite the hype surrounding the device category, wearables other than fitness trackers have failed to get anyone other than tech journalists truly excited.
Market research and consumer insights firm GfK puts total global smartwatch sales for 2014 at just 4 million units and US sales at just 1.2 million, even though last year saw the launch of the first stylish, functional and affordable Android Wear devices.
GfK attributed this weak performance to cost and confusion.
"Many consumers are not yet aware of the additional benefits a smartwatch has to offer," said Dr. Jan Wassmann, Global Product Manager for Wearables at GfK.
However, based on the findings of the CEA's latest Index of Consumer Technology Expectations (ICTE), which measures US consumer expectations about technology spending, it appears that the official launch of the Apple Watch has done a lot to address this lack of consumer understanding.
"Consumer sentiment toward tech spending experienced a slight increase in April, likely driven by excitement around new products shipping this spring, particularly within the smart watch category," said Shawn DuBravac, Ph.D., chief economist, CEA.
Apple has been uncharacteristically mooted about consumer response to its first smartwatch, with Tim Cook almost dodging questions about the device during the company's earnings call this week -- though he did confirm that demand is currently outstripping supply.
Analysts put initial first weekend orders for the watch at the 1 million+ mark, meaning that, if the figures are accurate, the device has proved more popular in two days than all Android Wear devices combined for the whole of 2014 (720,000 sales in total).
And industry experts believe that this demand will get consumers excited about and willing to spend on wearables in general. Mobile, internet and media industries analysis company CCS Insights forecasts that the Apple Watch effect will cause a 158% increase in wearables sales over the course of 2015.
The CEA's data puts projected smartwatch sales for 2015 at 11 million devices.
