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Wearable devices and IoT driving mobile industry in 2014

By mzivkocms on August 4, 2014

The third wave of mobile Internet to be driven by wearable devices and IoT.

Joanne Chien, director and senior analyst at Digitimes Research indicated that the wearable device industry and IoT will jointly lead the third wave of restructuring of the mobile Internet market in 2014. Wearable devices form a personal “Internet of You” for individual users, and its value lies on services such as the seamless, self-tracking, and environmentally integrated personal data analysis and prediction.

The key to success for the wearable industry may be down to two factors. First, the business model: vendors must design services that appeal to consumers and may have to offer subsidies for both services and hardware. Second, the personal link: wearables are devices whose appeal is built on functions and appearances, brand value and image, as well as marketing gimmicks (which, for instance, separate them from conventional electronics outlets and move them into boutique-like stores). She believes that the Google Glass and Wear, the iWatch that is expected to be launched by Apple, and other vertical integrated applications can help the entire wearable industry go beyond the electronics market.

Chien  concluded that services and transformation of mobile devices have become Microsoft’s new focus. Google and Amazon still focus on online advertising and online retail. On the hardware side, Microsoft remains the leader in terms of revenues generated by own-brand shipments, followed by Amazon, and then Google. Google is still leading the wearable device market; Amazon stays focused on the smartphone segment in the meantime; and Microsoft’s mobile platform has lagged behind and its share remains low, which will affect its development in the wearable device market.

Read More here: http://www.digitimes.com/supply_chain_window/story.asp?datepublish=2014/06/30&pages=PR&seq=200

Regards, Milorad

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