Smart watch and fitness tracker that can count steps, or watches that have access to applications for smartphones and can even make calls these and similar gadgets made to make life easier, but because of high demand.
For example, MA Guosheng, 37-year-old IT specialist, working in a Bank in Hunan province, spent about 1,800 yuan ($270) on smart watch 4G TicWatch Pro, made by Chinese company Mobvoi Inc. “The watch can obtain access to dozens of apps and phone calls, said MA, is even more important that they work four to five days. I don’t need to charge them every day.”
Convinced users like MA, help increase sales of hand-held devices in the country. In the third quarter of last year, China had shipped more than 14.5 million mobile devices. Sales of gadgets that support external applications, increased by approximately 74 percent, according to the research firm International Data Corp. For comparison, during the three months global shipments of handheld devices totaled 32 million units. Thus, the share of China accounted for over one third of all sales in the segment.
Ramon T. Llamas, research Director for mobile devices at IDC, said that “China is the largest market of mobile devices, more than twice the volume of the US market, grew thanks to active development of devices and experiments, as well as the low cost of production and the high demand for basic devices new users”.
Other company, Gartner, also involved in market research, has predicted that the supply of portable devices around the world made this year to 225 million units, 25.8 percent more than in 2018, mainly thanks to the Chinese market. As a result, according to Gartner, costs end users on the portable devices this year, is expected to total $ 42 billion, of which 16.2 billion — the cost of smart watches.
Sensing the business potential for the production of smart mobile devices, Chinese suppliers are rapidly expanding the range of its products. Xiaomi Corp. strengthened the desire to expand its presence in the sector through Huami Corp., registered in the U.S. a company in which she invested a lot of money. Huami company produces bracelets and smart watch for Xiaomi, which helped the latter to surpass Apple Inc. as the largest supplier of mobile devices in the third quarter of 2018. So, from July to September, Xiaomi has shipped 6.9 million portable devices, which accounted for 21.5 per cent of the world market. According to IDC, the growth for this period amounted to 90.9 per cent year on year. The enormous popularity of Mi Band 3 and its successful “performance” in the international markets support the growth of the company Xiaomi. According to IDC, nearly 39 percent of total shipments were exported from Xiaomi of China, which is 20 percent more than the year before. The company has successfully expanded its business in regions such as India and the countries of Europe, Middle East and Africa.
Apple also showed strong growth of more than 50 percent compared to the same period last year, during which time it was released 4.2 million portable devices. Despite the loss, the company Xiaomi in shipments, Apple retained an absolute advantage in the premium segment thanks to a series of Apple Watch.
“Now the market of smart watches (smartwatch) is maintained relatively stable and less high average selling price Apple Watch,’ said senior Director Gartner, Alan Antin. But the overall average selling price of smart watches is expected to decline slowly from 222 $ 2018 to $ 210 in 2022, as competitors to market with more affordable products and large volumes, which leads to lower production costs and cost components”.
Another segment, which shows strong growth in China, this is a watch for kids. Despite the lack of opportunities to make payments, devices have other typical smartwatch skills, designed to ensure that children are accustomed to mobile technologies and use them actively, as adolescents and adults. Thus, the SE model of the smartwatch 3, presented by 360 Security Technology Inc., comes with GPS and Beidou positioning, which can help parents to easily locate their children, which reinforces the child’s safety.
Equipped with a 1.44-inch screen, the watch also supports Internet phone calls, and have a transparent list of names, which can cut off unwanted calls. Parents can also set the time during which the device cannot be used, so children are not distracted by it during class at school.
Other Chinese companies such as Huawei Technologies Co. Ltd., also introduced its own version of smart watches that are suitable for sports and other purposes, hoping to occupy a place in the market.
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