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    The smart watch market may break out again after three years
    Auther: Pubdate:2019-03-11
    In contrast to the slump in the smartphone market, global Smartwatch shipments reached 18.2 million units in the fourth quarter of 2018, up 56% year-on-year.
    The History of the Rise and Fall of Smart Watches
    In 2012, a company called Pebble launched a smart watch compatible with the iPhone and Android system on a crowdsourcing website in the United States, which allows users to send and receive information and browse online.
    This first appearance, let the big tycoons see this business opportunity, and then, Google, Apple, Samsung, Huawei, millet and other manufacturers have entered, causing a wave of smart device wear craze. In September 2014, Apple launched the Apple Watch series.
    The smart watch market reached a new high in 2015. According to data released by IDC, global wearable device sales grew by 200% year-on-year in the fourth quarter of 2015, with total shipments reaching 21 million. Among them, domestic bracelets also rose during this period, and millet bracelets became the second largest manufacturer of wearable equipment with a market share of 15.4%.
    But after reaching a certain height, the smart watch market began to slump. Around 2016, Apple's Apple Watch shipments began to decline, Moto also announced a moratorium on the development of new smart watches, and the whole market began to plunge into a bleak situation.
    Until 2018, smart watches were able to re-ignite the fire.
    According to the latest report released by Strategy Analytics, Apple Watch still accounts for half of smart watch shipments today. However, its market share also fell from 67% of Q4 in 2017 to 51% in the quarter.
    Smart watchmakers, including Samsung, Fitbit and Garmin, are trying to grab hold of Apple's monopolized industry, especially the smart watch portfolio and retail business of the latter two companies, which have improved significantly over the past year.
    Jiaming leads the market competition
    For domestic consumers, Fitbit and Jiaming may be relatively unfamiliar brands, but in fact, both smart device manufacturers, focusing on health monitoring and outdoor sports, have a history of watches more than Apple.
    One of the important points is that when the industry has certain basic functions to achieve, differentiation will be magnified by consumers. For example, three years ago, when you chose a smart watch, you might be mainly influenced by whether it was similar to a traditional watch in shape, whether it could realize the functions of receiving information and calling. Now these functions have become "standard matching". More professional functions such as blood pressure and heart rate monitoring will become a consideration factor for consumers.
    In other words, if Apple Watch does not bring enough attention to the "black technology" in the updating process, it will also lose the consumer's curiosity about a brand new series when the original product is released.
    Last Wednesday, the shares of American company Jiaming surged 17% to an 11-year high after closing. In a sense, outdoor sports enthusiasts are igniting demand for smart wearable devices.
    The company's outdoor sales rose significantly in the fourth quarter, up 23% year-on-year. Adventure watches are the main contributors to the rise in outdoor business, with gross profit and operating profit rising to 67% and 38%, respectively.
    Investors had feared that Jiaming might face fierce competition in the fourth quarter of holiday price cuts. However, the company's wide range of business allows it to effectively combat seasonal factors.
    In addition to smart wearing equipment, Jiaming's main business covers aviation, navigation, vehicle use and sports fitness market. The market for portable navigator equipment shrank, car sales declined, and Jiaming's auto business fell 28% in the fourth quarter compared with the same period last year. However, boosted by outdoor, aviation and navigation business, overall revenue still increased by 4% year-on-year.
    "In 2019, we see many opportunities ahead and believe that we are ready to seize them." Cliff Pemble, Chief Executive Officer of Jiaming, said.
    It is worth noting that Garmin's gross profit margin of 59% in its earnings is much higher than that of its competitor Fitbit, which is 39%.
    According to Fitbit's financial report for the fourth quarter and the whole year of fiscal year 2018 as of December 31. According to GAAP, Fitbit's fourth-quarter revenue was $571.2 million, almost the same as $570.8 million in the same period last year; its net profit was $15.4 million and its net loss was $45.5 million in the same period last year.
    Shares fell more than 14% in after-hours trading as the company's outlook for first-quarter revenue and adjusted earnings per share fell short of analysts'expectations.
    On the general trend, the share prices of many wearable equipment companies also rose after Garmin released its earnings report, showing an increase in expectations of wearable market demand. Fitbit, which had fallen sharply at one time, ended up 3.74% after closing on Friday.
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