Apple in particular is benefiting from the strong demand for wearables

Apple in particular is benefiting from the strong demand for wearables

5. November 2019 0 By Horst Buchwald

Apple in particular is benefiting from the strong demand for wearables

New York, January 4, 2019.

The research company Gartner estimates in its latest forecast that consumers worldwide will spend 51.5 billion dollars on wearable technology next year – an increase of 27% over the spending forecast for 2019.

“These discrete and almost invisible wearables will particularly increase acceptance among reluctant consumers,” said Alan Antin, senior research director at Gartner, in a press release.

Apple is expected to benefit most from this rapid growth as it is the market leader with its offering for this market. Smartwatches are the main driver of Wearable Tech’s growth, with global sales expected to grow 34% to $22.8 billion next year. In terms of shipping volume, worn devices are the second largest category, while headsets are number two in terms of revenue. Gartner estimates that 86 million Smartwatch and 70 million Ear-Worn devices will be delivered next year.

The growth of the market will not end there: Gartner predicts that total end-user wearable technology sales will reach $62.9 billion in 2021, an increase of 55% over 2019.

Apple has relied on wearables for years. The fifth version of Apple Watch has now been released, and it has just announced a pro version of its AirPods. The first steps are already paying off – the company’s Wearables, Home, and Accessories revenue segment grew 54% year-over-year in the fourth quarter, which ended September 28. This makes portable devices the company’s fastest growing revenue segment.

https://www.apple.com/newsroom/2019/10/apple-reports-fourth-quarter-results/

Apple is counting on a handful of new devices to further improve its position in this segment. In addition to the new AirPod Pro and the Apple Watch Series 5, the company recently updated its AirPods base model and launched new Beats by Dre PowerBeats Pro and Solo Pro devices. For example, the company has five new portable devices on offer for the upcoming Christmas season.

Apple is already the leading provider of portable technologies: it has the number 1 Smartwatch with its Apple Watch and dominates the earbud market with its AirPods and the Beats by Dre brand. What’s great for the company and its shareholders is that the Gartner data shows that both categories will grow significantly over the next year.

Smartwatches are the main driver of Wearable Tech’s growth, with global sales expected to grow 34% to $22.8 billion next year. In terms of shipping volume, worn devices are the second largest category, while headsets are number two in terms of revenue. Gartner estimates that 86 million Smartwatch and 70 million Ear-Worn devices will be delivered next year.

The growth of the market will not end there: Gartner predicts that total end-user wearable technology sales will reach $62.9 billion in 2021, an increase of 55% over 2019.

Of course Apple has relied on wearables for years. The company is already in the fifth version of its Apple Watch, and it has just announced a pro version of its AirPods. The first steps are already paying off – the company’s Wearables, Home, and Accessories revenue segment grew 54% year-on-year in the fourth quarter, which ended September 28. This makes portable devices the company’s fastest growing revenue segment.

Apple is offering new devices to further improve its position in this segment. In addition to the new AirPod Pro and the Apple Watch Series 5, the company recently updated its AirPods base model and launched new Beats by Dre PowerBeats Pro and Solo Pro devices. The company currently has five new portable devices on offer compared to last Christmas.

 

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