Interest in the Smartwatch Market Continuing to Grow Ahead of the Apple Watch Launch in 2015

[RaduTyrsina]

A new survey has been conducted by analysts at UBS and it shows that interest in the smartwatch market is continuing to grow ahead of the Apple Watch launch early next year. This is great news for Apple, as the company will be launching its product at a moment when the market will be on a rising trend.

4,000 respondents were asked to partake in the survey across four different countries, and about 10 percent cited that they are "very likely" to buy a smartwatch in the next year. Analysts predict Apple will sell around 24 million Apple Watches within the first nine months. This is based on an estimate of 240 million iPhones compatible with Apple Watch being in customers' hands by the end of 2015.

Another smaller survey of customers who said they are very likely to purchase a smart watch placed the Samsung Gear the first in their buying intentions, followed by the Apple Watch. Of course, Samsung's smartwatch is already released while Apple's device is yet to become officially available in its retail stores around the world.

According to the UBS, there's significant potential for the Apple Watch as it could become the 'spiritual successor to the iPhone'. Here are some more details:

Cellular and battery technology is not yet sufficiently miniaturized to fit in the Watch and allow independent functioning. We would think the ability to do so is maybe five years away. In fact, the screen size differential may mean that the Watch and the iPhone will prove complements rather than substitutes. Arguably that is the way the iPad and Mac might be playing out, different products for different jobs.

Given that about two-thirds of Apple's profit is generated by the iPhone, the company has to be concerned about the longer-term threat of replacement technology, whether it be a leap in handset technology or loss of key functions to wearables. With a sophisticated user interface and third-party apps coming on, Apple may be readying for the time when the Apple Watch encroaches on the smartphone market.

There are still many unknown details about how well the smartwatch will fare, but judging that it's a new category for Apple, chances are that Tim Cook and its team will do their best to redefine it.

Source: MacRumors