Tech analyst By Neil Cybart of Above Avalon is of the opinion that Apple is 10 years ahead in wearables. Explaining that introduction of advanced features and technologies like Assistive Touch on Apple Watch, and custom Silicon catapult the sales of wearables by the Cupertino tech giant. Combined sales of Apple Watch, AirPods, and Beats headphones, generate a $30 billion annual revenue which could earn the company a Fortune 100 company status.
The report further states that if Apple takes advantage of the current momentum and expands its wearables line-up by launching the alleged AR/VR headsets and glasses that can take the company’s wearables’ annual revenue to $50 billion in coming years. And the reason behind such massive success is the Cupertino tech giant’s focus on the development of processors, design, and ecosystem which are years ahead of the competition.
Measuring Apple’s wearables lead by new technologies, analyst says it’s 10 years ahead of other companies
Looking at the current sales number and new-user basis, Cybart estimates that Apple will sell more than 100 million wearable devices in 2021 because it has developed technology that is more than 5 years advanced than other wearable competitors like Samsung, FitBit, and others. According to the analyst, three components to Apple’s wearables lead:
- Custom silicon/technology/sensors (a four to five-year lead over the competition, and that is being generous to the competition)
- Design-led product development processes that emphasize the user experience (adds three years to Apple’s lead)
- A broader ecosystem build-out in terms of a suite of wearables and services (adds two years to Apple’s lead)
The report elaborates that technology, design, and ecosystem together bring about the success of wearable devices that Apple has achieved with Apple Watch with support for AirPods, offering several health and accessibility features like the Assistive Touch. The company has also launched its smartwatch bound Fitness+ service.
Succeeding on the technology front is not enough. Wearables need to be designed so that people want to be seen wearing them for extended periods of time. A smartwatch or wireless pair of headphones must also be able to work seamlessly with other devices and services. A competitor needs to have not only an answer for effectively competing with Apple Watch on the wearables front, but also answers for various services available on AirPods and Apple’s other devices. Looking ahead, Apple’s entry into face wearables will only make the hill to climb that much steeper for competitors trying to go after Apple Watch and AirPods.
As the work of research and development beginnings years prior to the launch of new technologies that are recently launched by the Cupertino tech company, Cybart believes other wearable competitors are years behind. He concludes that,
Apple’s wearables lead stands to grow further once the company enters face wearables. The next few years will likely dictate the power structure in wearables for the next 10 to 20 years. When it comes to competitors figuring out a way to slow Apple in wearables, it’s now or never.