Cellular Connections Could Be Key To Driving Next-Gen Smartwatches, Says NPD
Newer smartwatches with cellular connections that free the device from a smartphone could be a major adoption driver for the next generation of smartwatches, said NPD analyst Eddie Hold in a blog post. “The freedom to completely untether from the…
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smartphone could become the next logical ‘killer use’” for smartwatch owners, allowing them to go for a jog without carrying a phone, he said. Service fees stand in the way of the rise of the cellular-equipped smartwatch. “Success will no doubt be related to the correct balance between service fees and how important the untethering aspect of these devices proves to be,” said Hold. Time checking is still the most popular use for a smartwatch with more than 55 percent of users tracking time on a “very regular basis,” according to NPD data, and some 41 percent of users tracking steps. Activity tracking has become more important to users, but getting notifications and checking time remain “front and center,” he said. Smartwatch adoption skews “younger and lower income” in many cases, leading to an inclination to label buyers as “early tech adopters,” said Hold Wednesday. The service industry, however, is emerging as a viable target group. Valets, bar staff and waiters can’t “stay glued to their phones while they are working, but still want access to ‘glanceable’ information,” he said, such as messaging notifications, alarms and time remaining on a shift. “The ability to remain in contact without reaching for the phone is still the killer app,” he said.