The smartwatch market in 2020
The global smartwatch market is expected to see a decline in 2020 due to COVID-19. Most retail outlets, as well as production facilities, remained closed while the public is forced to stay at home.
Like many other industries, the smartwatch industry also relies on the Chinese supply chain. The Chinese smartwatch export shipments have been disrupted, especially to the US. It is estimated that Chinese to the US also declined mainly due to the epidemic which disrupted most of the shipping industry. Huawei is also anticipating a decline of 15% in its electronic devices in 2020.
Meanwhile, smartwatches sales are also partly affected by delays in the launching of some new models. For instance, Apple, which planned to launch its Series 6 Apple Watch in September, has now been delayed.
Although demand and supply of smartwatches have been disrupted for the time being though their importance is expected to fuel in the coming months. The health and fitness trend will see more traction once the lockdown is relaxed. There is more emphasis on developing apps to fight coronavirus; for instance, the public health authority in Germany launched an app for smartwatches known as Corona-Datenspende (corona data donation). It is an interactive app which collects data from smartwatches sensors and compares it with COVID-19 symptoms and then maps it on an online platform to help authorities to easily asses the information regarding the virus. So far, over 500,000 people are registered on the app.
Samsung has also developed an app for smartwatches, known as Hand Wash. It has the timer of 20 seconds, which is needed to wash the virus away from hands. It also keeps track of the hand washes as well as sends reminders for hand wash.
With retails outlets have been closed in almost all major markets, online sales have to take an additional share in sales.
Amazon is also struggling to manage the situation by delivering with online deliveries due to exponential growth in demand for home deliveries. It priorities its sales of essential goods to reduce pressure on its warehouses. This may keep the sales down for some time. However, we expect that sales would recover further in the coming months. However, despite the rise in online sales, the decline in 2020 is still inevitable.
We expect a renewed growth in sales in 2021 as the expected control over the epidemic. We expect that the supply chain would be back to normal by then. Developed markets will continue to dominate the sales in the coming years. Asia and Africa will see less market decline as compared to developed countries. The decline in the regions is mainly due to the dependency on Chinese products.
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