In addition to the much hype received by Apple Inc (NASDAQ:AAPL)’s iWatch, a report from Cowen & Co., investment bank, states that the iconic device might revolutionize the wearable device industry.
Cowen & Co. further predicted that the wearable device industry market might grow up to $170 billion by 2020 from existing $10 billion in 2014. This is an important report favoring iWatch, which is all set to reveal today at a press event in Cupertino, Calif. Experts are already speculating that the iWatch will add a new definition to the wearable devices in terms of style and price.
It is likely that Apple Inc (NASDAQ:AAPL) will place it near the $400 price range unlike the less costlier version from Google Inc (NASDAQ:GOOGL)’s Umbrella priced near $200 and Samsung Electronics Co Ltd (KRX:005930)’s Gear-2-Silver device with $300 price tag. The report further stated that consumer fitness and entertainment/lifestyle market would account for 50% of the wearable devices in 2020 down from their current share of 61%.
“We see the consumer side of the wearables market evolving beyond single-use fitness bands to multifunctional smartwatches, glasses and even jewelry.”
The industry is likely to witness a revolution in health care and enterprise versions of these wearable accessories. Health care wearable will be used for monitoring chronic cardiac conditions and serve several other healthcare purposes. Similarly, the enterprise edition of these devices would target engineers, medical professionals, military personnel, and law enforcement agencies.
Cowen further stated that enterprise wearable devices would grow by 8% in 2020 as compared to their current 1% growth rate. Further, the segment is likely to grow with compound annual growth rate of 132% by 2020.
Apple Inc (NASDAQ:AAPL) has not introduced any innovative gadget for the last four years. There is a huge pressure on Apple Inc (NASDAQ:AAPL) to introduce a special gadget at its event in Cupertino, California.
This article has been written by Prakash Pandey and edited by Serkan Ünal.