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Wearables Competitive Landscape 2015 (18 pages)

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The wearables market leading into 2016 is dominated by wrist devices. Our analysis will focus on these devices while referencing several devices that are on the fringe of this competitive space. There are several small pockets of highly forward-thinking products with an undetermined success rate to date. This is largely due to the infancy of the marketplace and the short time in the market. The Oculus VR, for example, does not currently have much mass-market commercial penetration, nor does it offer applications for the everyday person. The watch sector, in contrast, has been successfully proven over the last decade.

There are many players in the space. The primary dif- ferentiators between products are operating system and wearable form factor. Most watch products offer standard data capture and GPS features, with sever products entering into the personal computing arena. For example, the Android watches give text and call ability, as does the Apple Watch.

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Wearables Competitive Landscape 2015 (18 pages)

  1. 1. Last Modified: July 27, 2015 6:36 AMPage 1 FORMULA COMPONENT Wearables Competitive Landscape 2015 July 27, 2015 Formula Partners is an innovation management con- sulting firm with offices in Los Angeles, San Francisco and New York. Our mission is to enable executives and visionaries within the Enterprise to achieve their goals in innovation and continuous improvement. We work with a select number of executives and visionary leaders each year. Message us to inquire about availability or schedule a demo. About Formula Partners
  2. 2. Last Modified: July 27, 2015 6:36 AMPage 2 Table of Contents What is the scope of competition? 3 Samsung 3 Android Wear 3 Apple 4 Google Glass 5 Fitbit 5 Microsoft 6 Jawbone 6 Nike 7 Adidas 7 Garmin 8 Pebble 8 Small Players 9 Digitsole 9 Skully 9 Oxie 10 Fitbit 11 Apple 11 Android Wear 11 Who is having success? 11 What are 5 killer fitness apps? 12 Nike+ Running for Apple 12 Hello Heart for Apple 12 FitStar Yoga for Apple 12 Google Fit for Android 12 Ingress for Android 13 What are 5 more killer wearable apps? 14 Golfshot for Android 14 PixtoCam for Android 14 Huebble for Pebble 14 Empatica Epilepsy Watch 14 GoPro for Apple 15 What are the existing ‘digital fabric’ market comps? 16 Hypercolor by Generra 16 Nike Dri Fit 16 Lululemon 16 Under Armour 17 Who is at the cutting edge? 18 Levi’s x Google: Project Jacquard 18 Google: Project Soli 18
  3. 3. Last Modified: July 27, 2015 6:36 AMPage 3 The wearables market leading into 2016 is dominat- ed by wrist devices. Our analysis will focus on these devices while referencing several devices that are on the fringe of this competitive space. There are sever- al small pockets of highly forward-thinking products with an undetermined success rate to date. This is largely due to the infancy of the marketplace and the short time in the market. The Oculus VR, for example, does not currently have much mass-market commer- cial penetration, nor does it offer applications for the everyday person. The watch sector, in contrast, has been successfully proven over the last decade. There are many players in the space. The primary dif- ferentiators between products are operating system and wearable form factor. Most watch products offer standard data capture and GPS features, with sever products entering into the personal computing are- na. For example, the Android watches give text and call ability, as does the Apple Watch. Samsung FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS With 1.2 million units sold in 2014, Samsung Gear rep- resents a large player in the space. The Samsung wear- able devices have a very similar feature set to Android Wear devices. Unlike Android wear, Samsung Gear uses the Tizen OS.1 This is a surprising departure as Samsung has al- ways heavily relied on the Android platform. Samsung GearFit Samsung GearS Android Wear FEATURE AVAILABLE Call Text 1 http://www.cnet.com/news/samsung-galaxy-gear-update- swaps-android-for-tizen/ What is the scope of competition?
  4. 4. Last Modified: July 27, 2015 6:36 AMPage 4 FEATURE AVAILABLE Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Android leads the watch sector in terms of breadth of manufacturers. They have several vendors on board, namely Asus, Motorola, Huawei and LG. Motorola Moto 360 As expected, Android watches take advantage of a simplified Android operating system. This includes the ability to text, call and email. In addition, access to heart rate data is also accessible from the watch. These watches sync data to the cloud via Google’s core service offerings like Hangout, Gmail, etc. While benchmarking the segment, Android watch sales were a drop in the bucket compared to the launch of the Apple Watch.2 LET Apple FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Apple launched the Apple Watch in early 2015 to much fanfare. Sales have been very strong, estimated to reach $35M+ in 2015.3 2 http://www.techradar.com/us/news/wearables/apple-watch- sales-1290701 3 http://247wallst.com/consumer-electronics/2015/05/26/can-ap- ple-watch-sales-reach-40-million/
  5. 5. Last Modified: July 27, 2015 6:36 AMPage 5 Apple’s watch is offers much the same feature set of the Android watches, albeit with their always closed, proprietary OS. While the open Android platform has grown the segment greatly, Apple hopes to capitalize on its seamless integration into the OSX operating sys- tem and sync capability with iTunes and related Mac applications. Google Glass FEATURE AVAILABLE Call Text FEATURE AVAILABLE Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Google Glass is one of the few wearable devices that spans the spectrum between computer, heads up dis- play, and standard wearable device. Released in Feb- ruary of 2013, the product has since been shuttered.4 Google Glass It is unclear if Google Glass will continue on in some form in the future. Fitbit FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS 4 http://www.businessinsider.com/google-ends-sales-of-google- glass-2015-1
  6. 6. Last Modified: July 27, 2015 6:36 AMPage 6 While Samsung, Android Wear and Apple have a sharp focus on wearble computing, Fitbit focuses more on the health and wellness segment. Fitbit Zip Fitbit Surge With gross sales for 2015 projected near $1B, Fitbit dominates the wellness and activity space.5 Together with their recent announcement of a $100M IPO, Fitbit looks to continue their success in the health and well- ness space.6 Fitbit’s devices use a proprietary OS, then publish data to their tracking application. The stark simplicity of the devices and applications seems to have served them well. 5 http://www.huffingtonpost.com/julie-ask/fitbit-ipo-the-road- ahead_b_7257706.html 6 http://www.cbsnews.com/news/fitbit-wearable-tech-files-for- 100-million-ipo/ Microsoft FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS New for 2015 is the Microsoft Band. Microsoft seems to be having real success with its Band device. It is not clear how strong sales have been, but reviews have been positive. Jawbone FEATURE AVAILABLE Call Text
  7. 7. Last Modified: July 27, 2015 6:36 AMPage 7 FEATURE AVAILABLE Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Jawbone and Nike are said to tail Fitbit in sales by a distant margin. Jawbone is more simple than both the Fitbit and Nike devices, and could be considered a glorfied motion capture device. Jawbone UP Jawbone continues to release new products, with their latest being the “UP3 Tracker.” Nike FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Nike is one of the more interesting case studies in the group. Despite dominating the market in 2013 with $33M in sales, Nike shuttered the popular Fuel- Band program in 2014.7 Nike FuelBand Nike GPS Watch It remains to be seen what Nike’s next wearable tech- nology initatives wiil contain, or when this next initia- tive will happen. Adidas FEATURE AVAILABLE Call Text Email Heart Rate Apps 7 http://www.cnet.com/news/fuelband-layoffs-nike-signals-it-was- not-and-never-will-be-tech-company/
  8. 8. Last Modified: July 27, 2015 6:36 AMPage 8 FEATURE AVAILABLE Wifi Cloud Sync 3G / 4G Camera GPS Adidas has also entered the fitness tracker wearables space. First with their upmarket Run Smart watch, then again in mid-2014 with their Fit Smart band. Adidas Run Smart Adidas Fit Smart It remains to be seen what Adidas’ level of success will be. Garmin FEATURE AVAILABLE Call FEATURE AVAILABLE Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Garmin is an interesting entry into the smart wear- ables segment. Garmin first began with GPS equip- ment for cars and gradually made an entry into the handheld GPS market. Garmin 620
  9. 9. Last Modified: July 27, 2015 6:36 AMPage 9 Garmin vivoactive Garmin has continued using GPS as it’s core product promise with it’s new activity monitors. These devic- es are marketed more at the ‘outdoor’ segment. Us- ers can also download GPS data from golf courses. Pebble FEATURE AVAILABLE Call Text Email Heart Rate Apps Wifi Cloud Sync 3G / 4G Camera GPS Pebble claims to have sold over 1M smartwatches to date.8 Pebble’s key differentiator is app and external device integration. For example, using the Pebble de- vice to trigger external devices like a camera. Pebble Time 8 http://www.cnbc.com/id/102389470 Pebble Steel Pebble continues to recieve positive reviews on Am- azon. Small Players Some of the small players in the space are doing very intersting things. Digitsole Digitsole launched on KickStarter in September of 2014. The Digitsole acts as both a remote foot warm- er and pedometer. Skully Skully is a ‘heads up display’ (HUD) for motorcycle riders. Similar to Google Glass, it can project help- ful information like a back-up or blind-spot cam- era on a small crystal screen inside the helmet.
  10. 10. Last Modified: July 27, 2015 6:36 AMPage 10 Oxie Oxie is a wearable air purifier.
  11. 11. Last Modified: July 27, 2015 6:36 AMPage 11 Fitbit The breakout in the activity monitoring category is clearly Fitbit. Fitbit Surge With gross sales for 2015 projected near $1B, Fitbit dominates the wellness and activity space.9 Together with their recent announcement of a $100M IPO, Fit- bit looks to continue their success in the health and wellness space.10 Apple The clear winner in the smartwatch category is the Apple Watch. Nothing even comes close. Apple al- legedly sold more in one day than Android Wear sold in all of 2014.11 Given the success of it’s handheld devices like iPhone 9 http://www.huffingtonpost.com/julie-ask/fitbit-ipo-the-road- ahead_b_7257706.html 10 http://www.cbsnews.com/news/fitbit-wearable-tech-files-for- 100-million-ipo/ 11 http://www.techradar.com/us/news/wearables/apple-watch- sales-1290701 and its tablets, Apple is sure to continue it’s dominat- ing performance. However, there remains a very large Android customer base that could first consider other smartwatch plat- forms before Apple. Android Wear Android Wear seems to be following the strategy that grew Android to where it is currently, as a world lead- ing mobile OS. The Android platform will always be an attractive op- tion for device manufacturers. They have several ven- dors on board, namely Asus, Motorola, Huawei and LG. Who is having success?
  12. 12. Last Modified: July 27, 2015 6:36 AMPage 12 The fitness and health/wellness segments are natural fits for wearable technology. While wearable technolo- gy is in its infancy, we expect to see great innovation in the years to come. Here are some standout fitness wearable apps. Nike+ Running for Apple The beauty of the Nike+ Running app is simplicity. Primarily a pace tracker, the app also includes social features and integration with Nike’s other fitness apps. It would seem that with the advent of high-perfor- mance smart watches, Nike has decided to utilize these devices as opposed to building their own. Hello Heart for Apple Hello Heart is a simple heart monitor, data history repository, and health coach. FitStar Yoga for Apple FitStar Yoga is a personal yoga coach in your wear- able device. It uses the device’s motion sensor to judge the quality of your positions. Google Fit for Android Google Fit is a general fitness and activity app that encourages users to be more active. What are 5 killer fitness apps?
  13. 13. Last Modified: July 27, 2015 6:36 AMPage 13 Ingress for Android While not explicitly a fitness app, Ingress might be the coolest activity app on the market. The gameplay consists of establishing “portals” at places of cultural significance, such as public art, landmarks, monuments, etc., and linking them to create virtual triangular “control fields” over geo- graphical areas. Progress in the game is measured by the number of “mind units” (MUs) captured via such control fields, i.e. people nominally controlled by each faction.1 1 http://en.wikipedia.org/wiki/Ingress_%28game%29
  14. 14. Last Modified: July 27, 2015 6:36 AMPage 14 Golfshot for Android Golfshot for Android is a solid real-world example of a wearable device in the wild, with a large address- ible market. Golfshot uses GPS and exisitng golf course data to give precise context to every golf shot at selected courses. PixtoCam for Android Surveillance and security will be a huge theme for the rest of the century, it seems. PixtoCam is a simple remote control application between smartwatch and any Android camera. Huebble for Pebble The integration of environmental devices and a smartwatch is a natural fit. While this is not incredibly compelling, it could be a great addition in the service or retail industries. Empatica Epilepsy Watch This is one watch that can have fantastic real world implications. The Embrace watch can detect seizures and alert caregivers of a seizure event. What are 5 more killer wearable apps?
  15. 15. Last Modified: July 27, 2015 6:36 AMPage 15 GoPro for Apple In less than ten years, GoPro has revolutionized per- sonal video. It’s only natural that you can now control your GoPro from a smartwach.
  16. 16. Last Modified: July 27, 2015 6:36 AMPage 16 Hypercolor by Generra Hypercolor was manufactured by Generra Sports- wear Company of Seattle and marketed in the United States as Generra Hypercolor or Generra Hypergrafix and elsewhere as Global Hypercolor. They contained a thermochromic pigment made by Matsui Shikiso Chemical of Japan, that changed between two colors – one when cold, one when warm. The shirts were produced with several color change choices begin- ning in 1991. Between February and May 1991 they sold $50 million in Hypercolor garments.1 Nike Dri Fit Nike Dri Fit has seen tremendous success since its in- troduction in 2009. It is unclear the total overall sales of the Dri Fit line, however the Dri Fit fabric has found its way deep into their apparel lines. Dri Fit ‘technology’ has replaced their more tradition- al fabrics almost entirely. 1 http://en.wikipedia.org/wiki/Hypercolor Lululemon Lululemon has grown into a bona fide $Billion com- pany. They have a suite of tech fabrics: Luon Luxtreme Swift Silverescent What are the existing ‘digital fabric’ market comps?
  17. 17. Last Modified: July 27, 2015 6:36 AMPage 17 Under Armour Under Armour has also seen incredible success in the fitness market. With sales of $3B in 2014, they are a giant in the space. Like lululemon, they have a suite of tech fabrics: - Coldgear - Coldgear Infrared - Storm - Charged Cotton - Heatgear
  18. 18. Last Modified: July 27, 2015 6:36 AMPage 18 While the wearables space is still in its infancy, we are already starting to see cuting-edge innovation and cre- ativity at the bleeding edge of the segment. Levi’s x Google: Project Jacquard Google has been working with Levi’s on developing a gesture sensitve fabric, called Project Jacquard. The technology turns ordinary fabric into a touchpad. Google: Project Soli With project Soli, Google is developing a sort of ‘ra- dar’ system to interpret hand gestures. One can imagine the wide range of potential applications for something like this in the smartwatch category. Who is at the cutting edge?

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