Executive Briefings

It's Time for Apple's Smart Watch Component Suppliers to Celebrate

The introduction of Apple's smart watch hardly surprised the journalist and analyst community by revealing anything truly "revolutionary" or unexpected. However, the wearable tech device launch next year is still expected to shake up the nascent sector's supply chain.

Smart watch volume sales worldwide will surge to 60 million units in 2015 compared to a total of 12 million units that are expected to be sold in 2014, according to the Smartwatch Group. Apple is expected to sell a whopping 30 million units and have a market share of 50 percent out of the 60 million volume sales total next year. This compares to Samsung's 20 percent share in 2014 and 10 percent to 15 percent market share in 2015, the analysts predict.

If Apple does indeed see volumes of this scale with its smart watch, OEMs stand to benefit. More suppliers are expected to rush to market to meet demand, and in doing so, of course, will collectively produce larger volumes of components. This should result in a per-component price drop by 20 percent by the end of next year, according to the Smartwatch Group.

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Smart watch volume sales worldwide will surge to 60 million units in 2015 compared to a total of 12 million units that are expected to be sold in 2014, according to the Smartwatch Group. Apple is expected to sell a whopping 30 million units and have a market share of 50 percent out of the 60 million volume sales total next year. This compares to Samsung's 20 percent share in 2014 and 10 percent to 15 percent market share in 2015, the analysts predict.

If Apple does indeed see volumes of this scale with its smart watch, OEMs stand to benefit. More suppliers are expected to rush to market to meet demand, and in doing so, of course, will collectively produce larger volumes of components. This should result in a per-component price drop by 20 percent by the end of next year, according to the Smartwatch Group.

Read Full Article