Doro’s UK and Ireland MD Chris Millington believes that the wearable market will continue to falter in 2016, as many vendors struggle to keep their smartwatch businesses viable.
Speaking to Mobile about the up and coming trends in the trends in the new year, Millington pointed to the Apple Watches 2015 performance as evidence of this trend, he said: ‘Despite the growing trend and desire for wearables in 2015, I think the new year will see a demise in ‘unnecessary technology’, with many vendors already struggling to keep smartwatches viable in their business.
‘In an ever-connected world, synchronised and integrated devices are an ideal concept to iron out human time spent on menial tasks and improve inefficiency - however this technology needs to be revolutionary and completely dependable for us to make this purchase decision. In Q2 Apple sold 3.6m smartwatches, against financial analyst’s estimated 40m of sales – and if Apple can’t make smartwatches work, you had better be careful if you try and imitate without a stronger proposition.’
Millington also expects the lower end of the smartphone market to becoming increasingly competitive in 2016, which will prove a challenge for established brands: ‘The battle for the entry level and mid-range smartphone market will define 2016. Tougher competition from relatively new players from China will result in two well-known brands calling time on production for some markets in 2016, or even a complete halt.
‘I believe the landscape for mobile manufacturers is changing drastically already, where greater global penetration for smartphones is accelerating the strength of these new players. To succeed in 2016, established brands will need to adapt fast and consolidate their business, stopping low cost, low margin devices and learning new ways to develop some new niche positioning in order to be relevant beyond 2017. Risk needs to be reduced through a much stronger differentiation from entry devices players.’