A smartwatch is a portable device that's designed to be worn on a wrist. Like smartphones, they use touchscreens, offer apps, and often record your heart rate and other vital signs.
The Apple Watch and Wear (formerly Android Wear) models prompted more consumers to appreciate the usefulness of wearing a mini computer on their wrists. In addition, specialty smartwatches for outdoor activities often supplement other, bulkier devices in an adventurer's tool kit.
While digital watches have been around for decades—some with abilities like calculators and unit converters—only in the 2010s did tech companies begin releasing watches with smartphone-like abilities.
Apple, Samsung, Sony, and other major players offer smartwatches on the consumer market, but a small startup actually deserves credit for popularizing the modern-day smartwatch. When Pebble announced its first smartwatch in 2013, it raised a record amount of funding on Kickstarter and went on to sell more than one million units.
At the same time, advances in silicon miniaturization opened the door to other kinds of dedicated-purpose smartwatches. Companies like Garmin, for example, support smartwatches like the Fenix, which are more rugged and optimized with sensors and trackers to support back-country expeditions. Likewise, companies like Suunto released smartwatches optimized for scuba diving that withstand extended time at significant depths.
Most smartwatches—whether they're intended for daily use (as with the Apple Watch) or for specific purposes (as with the Garmin Fenix)—offer a suite of standard features:
Broadly speaking, smartwatches occupy two niches in the wearables market. First, a general-purpose smartwatch—like the Apple Watch and most Google-powered Wear devices—blend form and function. They're designed to replace mechanical wristwatches and are heavily smartphone-dependent. Think of them as a support device for your phone that you happen to keep on your wrist.
You also see vendor-specific classes of general-purpose smartwatches in the consumer market:
The other niche includes specialty devices intended for specific-use cases. These devices often offer a more robust version of a fitness tracker, insofar as they bleed between a phone-dependent smartwatch and a stand-alone fitness tracker like a Fitbit.
Examples of these specialized devices include:
Smartwatches settled into a steep growth curve in the late 2010s in terms of global market adoption. Data from Statista shows that sales rose from five million units worldwide in 2014 to an estimated 141 million in 2018. Apple's market share rose from 13% to 17% from the second fiscal quarter of 2017 to the same period in 2018; Apple experienced year-over-year growth of more than 38% for its Apple Watch Series 3—despite that the Series 4, a major upgrade, was already on the horizon.
During the same period, specialty vendors like Garmin saw a 4.1% increase in year-over-year growth, while fitness-tracker-only vendors like Fitbit saw a nearly 22% market plunge.
Statista predicts that over 130 million smartwatches will ship worldwide by 2023.
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