A forecast from Gartner predicts a massive jump in consumer expenditure on wearables in 2020. The research firm has speculated a 27 percent increase in consumer spending, swelling it from $40.5 billion to $51.5 billion. These figures are largely based on smartwatches, which have become a style statement in recent years.
The growth in smartwatch spending is essentially a result of its decreasing prices. On an average, smartwatch prices are expected to dwindle by 4.5 percent in 2021. All thanks to the competition between Apple and Samsung and the external pressure of companies like Fitbit.
Chinese manufacturers like Xiomi and Huawei have also started bringing down the cost of their products, creating further pressure in the overall market.
Ranjit Atwal, Senior research director at Gartner said;
While brand leaders Apple Watch and Samsung Galaxy Watch command premium pricing in the smartwatch segment, lower-priced players such as Xiomi and Huawei will counterbalance high-priced smartwatches with lower cost smartwatches.
Manwhile, Apple is still selling its two year old Series 3 at $200 per unit. Google is also aiming to enter the wearable market a potential Fitbit acquisition, and a recently completed technology purchase from Fossil.
Headphones could be a big contributor to the foretasted swell in the sale of wearables as well. They have shown a continuous growth in the market especially after the launch of wireless earbuds from Apple and Samsung which created a boom in the market. Amazon has also entered the market with its low cost offerings, and now Google too is busy making moves to launch its Pixel Buds in 2020. Even Microsoft is eyeing the market with its own Surface Buds line of products.
Gartner has further predicted that end user expenditure over wearables will continue to grow in 2021 as well, touching or exceeding $62.9 billion.