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Futuresource Sees Wearables Shipments Growing 32% This Year

Consumer demand for wearable technology is "rising fast," with Q3 global shipments totaling 12.7 million units, up 40 percent from the year-ago quarter, Futuresource Consulting said in a report. The outlook for full-year 2014 is for shipments to grow 32…

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percent to 52 million units across "all wearable categories this year," the firm said. "Q4 is where we're going to see all the action, with annual sales heavily weighted towards the pre-Christmas period." The firm expects 39 percent of the year’s commerce in wearables to be concentrated in Q4, "as wearable tech provides an appealing gifting option for consumers," it said. For 2015, "we're anticipating further acceleration in the pace of growth," as smart watches become more widely adopted, with a 44 percent growth rate driving the market to 74 million units shipped next year, it said. "The brand landscape continues to be dominated by fitness companies, due to the relative size of the fitness market within wearables," it said. "Fitbit has effectively consolidated its significant lead in activity trackers, despite the entrance of larger CE competitors. Samsung comfortably leads in the nascent smart watch market and Garmin retains a strong lead in the traditional fitness category." The Apple Watch will have "a significant impact upon the connected watch market with its entry in 2015," it said. "Longer-term growth is dependent upon how compelling a use case emerges for existing wearable products. While we have an optimistic view of the wearable market, there remain some uncertainties around the usage models for wearables, and whether a compelling raison d'étre for the category will develop."