WEARABLE TECHNOLOGY
Prepared for
Shari Weiss
San Francisco, California
Prepared by
Dominic Carrasco
November 4th, 2014
TABLE OF CONTENTS
LIST OF ILLUSTRATIONS................................................................................................................................ iii
EXECUTIVE SUMMARY ................................................................................................................................. iv
INTRODUCTION: WEARABLE TECHNOLOGY ................................................................................................. 1
BACKGROUND: A BREIF HISTORY BEGININNG WITH GOOGLE GLASS .......................................................... 1
PURPOSE: ADOPTING WEARABLE TECHNOLOGY ......................................................................................... 2
SIGNIFICANCE: INCREASED PRODUCTIVITY IN THE WORKPLACE ................................................................. 2
SCOPE: POTENTIAL MARKET AND USES FOR WEARABLE TECHNOLOGY ...................................................... 2
ORGANIZATION ............................................................................................................................................. 3
FINDINGS....................................................................................................................................................... 3
INFOGRAPHIC ................................................................................................................................................ 7
CONCLUSIONS AND RECOMMENDATIONS ................................................................................................... 8
WORKS CITED ................................................................................................................................................ 9
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LIST OF ILLUSTRATIONS
FIGURE 1: TABLE OF DEVICES SHIPPED FROM 2013-2015 ............................................................................ 6
FIGURE 2: INFOGRAPHIC ON WEARBLE TECH .............................................................................................. 7
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EXECUTIVE SUMMARY
According to ShotTracker, wearable tech is "the next megatrend" — changing the way we live, work, and
play.
This conclusion comes from a company that is crowdfunding its own basketball-based wrist and net
sensors that, well, tracks shots. With one month left to meet its $25,000 goal, ShotTracker is offering
rewards that include a spot in former NBA shooting guard Billy Thomas's shooting camp ($300) and a
trip to the 2014 Men's NCAA basketball championship in Dallas ($10,000).
Athletes are a common target for wearable tech makers, many of whom have launched sports-related
gadgets, including Reebok's Checklight for monitoring the number of blows to the football players take,
Instabeat for tracking swimmers' heart rate, calories, laps, and breathing patterns, and Misfit Shine,
which tracks steps taken, activity levels, and sleep.ss
In fact, activity trackers and wearable fitness devices account for the majority of this year's wearable
market — 96 percent. That number is unsurprising, though, considering how saturated the space is with
devices like the Fitbit and Jawbone UP and Nike+ FuelBand.
The Organization of the report is as followed:
WHO MAKES UP THIS GROUP OF WEARABLE USERS?
GOOGLE GLASS IS TRANSFORMING WEARBLE TECHNOLOGY
SMART WATCHES ARE DRIVING THE WEARBLE TECH MARKET
BUSINESSES ARE CASHING OUT ON WEARABLES
INFOGRAPHIC ON WEARABLE TECH
CONCLUSIONS AND RECOMMENDATIONS
On the basis of these findings, it is recommended that consumers go out and find the best wearable
tech for them, whether is a smart watch, a pair of glasses, or the cool activity trackers. It is also
recommended that wearable users make sure to monitor their wearable use in public to make sure that
others privacy is not compromised while using devices like Google Glass.
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INTRODUCTION
This report is designed to take a closer look at wearables and their benefits to the average consumer
and big businesses. A few years ago, "wearable technology" meant little more than a clunky 1980s
calculator watch or a Bluetooth headset. Now, people are accessorizing with color-coordinated activity
trackers and fashionable yet functional smartwatches. According to Shortracker, wearable tech is “the
next megatrend” — changing the way we live, work, and play.
BACKGROUND: WHAT IS WEARABLE TECHNOLOGY?
Wearable technology is incorporated into things you wear on a day-to-day basis, and it could be
anything from a pair of glasses, a watch, or even clothing. The idea is that technology will increasing
become more part of our day-to-day lives, and it will become less intrusive, as it will be a part of the
everyday consumer’s attire. Statistics show that 82% of American consumers believe that wearable
technology has enhanced their lives. Google has revolutionized wearable technology with its inception
of the Google Glass. It is a completely hands free device that has features like SMS, Navigation, and
Fieldtrip. It allows for the user to experience their day to day lives in a completely new way, and be
connected to the things that are important to them. The most talked-about new wearable
technologies—such as the Apple iWatch and Google Glass—are either not yet widely available, or are
only just beginning to make their way into customers’ hands. There are many other wearable products
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that have already established themselves in the market. It is only a matter of time before the wearable
tech market explodes with the release of the highly anticipated iWatch.
PURPOSE: WHY CONSUMERS SHOULD ADOPT WEARABLE TECHNOLOGY
Wearable technology is beneficial for lots of different types of people. Whether it’s a business man,
sport enthusiast, student, or doctor, wearables increase productivity in any situation. For example,
someone trying to lose weight could benefit from using a product like FitBit to track their activity and
make sure they are on track to losing the weight.
SIGNIFICANCE: THE PREDICTED MARKET FOR WEARBLES IS HUGE
In 2012, 8.3 million fitness trackers, smart watches and other connected wearables were bought by
consumers. By 2017, the connected wearable market is expected to be 8 times larger than in 2012 and
by 2018 the forecast for worldwide spending will reach 19 billion. It is obvious that wearables will be the
next biggest thing in the tech world since smartphones, and with the release of iWatch more companies
will begin to model Apple’s product and think of even more innovative wearables.
SCOPE: WEARABLE TECH STARTING WITH GOOGLE GLASS
This report will discuss a variety of different wearable tech devices starting with Glass and their
functions as well as how they help to enhance the users’ daily experiences. Glass has also raised issues
regarding privacy rights and proper wearable technology use in public places. The Apple iWatch has yet
to be released but there are a lot of other smart watches like the Pebble that have been doing very well
with sales. Activity Trackers like the FitBit are also becoming increasingly popular amongst consumer.
The report will also be covering how different industries that are using wearable tech such as big
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businesses, medical implications, and the fashion world. The future of wearables is huge and the money
to be made is bigger. The Apple iWatch alone has been forecasted to really push us into the wearable
tech movement into the New Year, literally with its release in January 2015.
ORGANIZATION:
WHO MAKES UP THIS GROUP OF WEARABLE USERS?
GOOGLE GLASS IS TRANSFORMING WEARBLE TECHNOLOGY
SMART WATCHES ARE DRIVING THE WEARBLE TECH MARKET
BUSINESSES ARE CASHING OUT ON WEARABLES
INFOGRAPHIC ON WEARABLE TECH
CONCLUSIONS AND RECOMMENDATIONSFINDINGS:
WHO MAKES UP THIS GROUP OF WEARABLE USERS?
Wearable tech is a hot trend this season, seen on the sleeves of consumers walking down the street—
and even on models walking the runway. Already, about one in six consumers who have heard about
wearables are using them, and among them, 61 percent are wearing fitness bands. But the appeal of
wearables goes beyond fashion accessories, particularly as more consumers adopt technology to help
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address their individual health and fitness needs, using both wearables and smartphone apps to meet
their goals.
So who makes up this growing group of device owners interested in their health? Nielsen’s recent
Connected Life Report found that young adults lead the charge in adopting wearable tech, with
consumers between ages 18-34 making up half of owners of fitness bands (49%). While men and women
wear fitness bands in nearly equal numbers, women were more likely to use smartphone health apps
than men. Overall, wearables owners tend to have more disposable income, especially among fitness
band users, as one-in-three earn $100,000 or more in household income.
GOOGLE GLASS IS TRANSFORMING WEARBLE TECHNOLOGY
Glass is smart eyewear that helps you get exactly what you want, in the moment. It allows you to be
active, explore your world, and live lighter. Search, photos and videos, messaging, apps and more.
Designed for those who move Strava for Glass makes accessing real time feedback even easier so users
can stay in control of their run. Track runs with GPS, analyze performance, set new personal records and
see how you stack up against friends. See the world in your language with Word Lens, from road signs to
menus, Word Lens for Glass lets you translate printed words from one language to another, in real time.
This feature is great for the person doing international business or the traveler who enjoys to explore.
Live lighter and never miss a moment with easy to use hands free calling and texting with Glass. The
options are endless and this revolutionary device has really set the tone for the wearable tech
revolution with its sleek design and optimal functionality.
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With all the amazing and high tech features that Glass has, people are starting to become concerned
with privacy invasion. The Glass has an obvious camera attached to the frame of the glasses which raises
a lot of new questions. Using the device in public places may become taboo because the Glass user is
able to snap a picture or record someone without their knowledge or consent. Professors will have to
begin inspecting students more carefully as Glass can help a student cheat very easily on an exam
without their knowledge. There have also been incidents in the bay area of Glass users being attacked
for simply wearing them in public and flashing their affiliation with the tech movement that has been
taking over this area. With time there will be more rules and regulations surrounding Google Glass use in
public venues. Until then users need to be mindful of their wearable tech use and make sure not to
invade other peoples privacy.
SMART WATCHES ARE DRIVING THE WEARBLE TECH MARKET
The best smartwatch may be in the offing, but that doesn't mean there aren't good options to weigh
down early adopter wrists in 2014. Dozens of choices are available. A third are made by startups like
Pebble, a third from rebounding firms like Motorola, and a third are from Samsung alone ... in the last 30
seconds. All of them deliver important information closer than "at hand," from texts messages to email
alerts. Notifications and apps are the big difference between smartwatches and the best fitness
trackers. Yes, Apple Watch will likely change the face of digital wristwatches in early 2015 and Android
Wear will continue to evolve with the likes of the LG G Watch R and Sony SmartWatch 3.
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BUSINESSES ARE CASHING OUT ON WEARABLES
Canalys said that Fitbit accounted for just under 50 percent of all 2.7 million wearables bands sold in
1Q14, so let’s call that 1.3 million units. The Flex retails for $100, and probably wholesales for half that.
Call Fitbit’s 1Q revenue $65 million, with everyone else in the band business splitting $70 million. So
total 1Q wearable band revenue: $135 million. Assuming 25 percent growth this year let’s set the 2014
wearable band revenue at $675 million to $700 million. The company said Nike’s Fuelband accounted
for 10 percent of the market: 250,000 units, or $13.5 million in revenue. Half a million smart bands
shipped in 1Q14, 35 percent of them from Pebble, 29 percent from Sony, and 23 percent from Samsung.
Pebbles retail for either $150 or $250, and the Sony Smartwatch 2 retails for $200. Pebble’s 1Q14
revenue was $17.5 million, using Canalys’s figures, Sony’s was $14.5 million, and Samsung’s was $11.5
million.
The following table shows a breakdown of the different categories of wearable tech and how many
device shipments there were in 2013 and 2014 and the projected amount of shipments in 2015.
Figure 1
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CONCLUSIONS AND RECOMMENDATIONS
Despite the efforts of manufacturing giants like Google and Samsung, the smartwatch market has yet to
grow into a profitable project.
Consumers remain wary of wearable technology. A recent Harris Interactive poll showed that only 27
percent of Americans are "very or somewhat interested" in owning a watch-like smart device. Fewer
people, even, expressed interest in owning headsets or glasses.
That hasn't stopped the world from talking about them, though. According to ShotTracker, the total
number of tweets mentioning "wearable tech" in 2013 have skyrocketed since January, landing at
almost 65,000 mentions in September — the same month Samsung unveiled its Galaxy Gear
smartwatch.
A future full of wrist-worn fitness trackers, smartphone-connected watches, and futuristic Google
Glasses appears to be on the horizon. By 2017, ShotTracker estimates, consumers will be clamoring for
wearable devices, boosting shipments to a total 64 million — eight times more than the 8.3 million
purchased last year.
It is unclear whether that timeline syncs with the expectations of in-field experts, like Misfit Wearables
CEO Sonny Vu. The maker of the Shine activity monitor said recently that while "people are finding really
compelling use cases" for wearables, he's "not really sure we're there yet with many of the products
we've seen in the market."
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Works Cited
Fishman, Whitney. "Wearable Tech: From Smartphones to Smart Living." The Huffington Post.
TheHuffingtonPost.com, 02 Oct. 2014. Web. 10 Nov. 2014.
"Google Glass." What It Does. N.p., n.d. Web. 09 Nov. 2014. <http://www.google.com/glass/start/whatit-does/>.
Mlot, Stephanie. "Infographic: When Will Wearable Tech Really Take Off?" PCMAG. PC MAG, 14
Nov. 2013. Web. 10 Nov. 2014. <http://www.pcmag.com/article2/0,2817,2427103,00.asp>.
"Newswire ." Hacking Health: How Consumers Use Smartphones and Wearable Tech to Track Their
Health. Neilsen, 16 Apr. 2014. Web. 4 Nov. 2014.
Rosenbaum, Dan. "Who's Making How Much Money in the Wearable Band Market - Wearable Tech
Insider." Wearable Tech Insider. Wearable Tech Inside, 28 May 2014. Web. 10 Nov. 2014.
"SmartWatch." Sony Smartphones (United States). Sony, n.d. Web. 10 Nov. 2014.
Swider, Matt. "Best Smartwatch: What's the Best Wearable Tech for You?" TechRadar. N.p., 08 Oct.
2014. Web. 10 Nov. 2014.
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