The wearable device market is starting to grow, and in Australia, the Apple Watch is by far the dominant player.
According to market research firm Telsyte, Apple Watch has more than 50 percent of the smartwatch market share Down Under, with the Samsung Gear and Fitbit Blaze following behind. The research firm found that smartwatch sales grew by 89 percent in the first half of 2016 compared to the first half of 2015. Australia’s focus on health and fitness, the use of health and fitness apps and the widespread adoption of contactless payments is driving the high adoption rates.
The Telsyte research shows that 47 percent of Australian smartwatch and smartband wearers exercise a minimum of 30 minutes a day compared to 30 percent for the general public. What’s more, price reductions and greater availability of the devices are driving demand. It doesn’t hurt that more stylish designs and options are being launched and that people can also use the devices to make mobile payments.
“As smartphone replacement cycles have lengthened, consumers are turning to other gadgets, and smartwatches have started to capture the imagination,” Telsyte Managing Director Foad Fadaghi said in a press release announcing the new research. “We might be seeing the beginning of a substitution effect, where consumers are choosing a smartwatch over a new smartphone.”
Telsyte is forecasting that 37 percent of Australians will be wearing a smart wearable, either bands or smartwatches, by 2020. The firm expects a substantial increase in sales in 2017 and 2018 “driven by the arrival of a second-generation Apple Watch, continued price decreases and more uptake of mobile payments on Apple and Android compatible wearables.” The firm is forecasting 14 percent of all Australians, or about 3.5 million, currently wear a smart wearable device of some sort.