Smartwatches and fitness trackers like Jawbone Up and Fitbit are getting lots of media exposure but are people really buying them? New report finds that not many people own one, but the future is promising. Read our commentary: http://ondeviceresearch.com/blog/wearable-technology-tipping-point

1. Wearable Technology
Ready for Prime Time?
September2013

2. With the launch of Samsung
Gear and Qualcomm’s Toq, the
smartwatch market is starting to
see real action emerge.
A survey of over 1,568 smartphone owners
in the US and UK carried out by telecom
analyst firm CSS Insight and mobile
survey company On Device Research
reveals the potential and threats of
this new product category.

3. Awareness of smartwatches is
relatively high in both markets
Q: Have you heard of smartwatches?
35%
38%
23%
4%
37%
39%
22%
2%
No Yes, but I've never seen one Yes, I've seen them but
never owned one
Yes, I own or used to own
one
US UK
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

4. 40%
23%
32%
5%
54%
26%
18%
2%
No Yes, but I've never seen one Yes, I've seen them but
never owned one
Yes, I own or used to own
one
US UK
UK lags behind the US in
terms of awareness and
ownership of fitness trackers
Q: Have you heard of fitness trackers?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

5. Over 40% are following
news about the upcoming
smartwatches
Q: Have you heard about the upcoming smartwatches from
Samsung, Google, Apple and others?
45%
14%
24%
17%
41%
17%
27%
15%
No Yes, but I'm not interested in
them
Yes, I'm following the news
coverage
Yes, and I'm really excited
about them
US UK
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

6. Men of all ages are driving the
interest in wearable technology
Q: Have you heard about the upcoming smartwatches from
Samsung, Google, Apple and others?
27%
21%22%
16%
Following the news Really excited
Men Women
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

7. Low sustained interest: 45% of
smartwatch owners have stopped using
them*
55% use
regularly
45%
stopped
using
Source: On Device Research, September 2013
n=1568, US, UK smartphone users
Although the numbers are small
there is clear indication that
smartwatches and fitness trackers
are not “sticky”. The main reasons
people who’ve stopped using their
smartwatches - “forgot to wear it”
and “got bored with it” – hint that
the benefits are not clear and
strong enough.
* Low sample size, directional use only

8. Steve from Sheffield
Former Pebble smartwatch owner
Source: PC Pro magazine, September 2013

9. Smartwatch is for sports
(and for everything else too)
62% of the US consumers mentioned sports and
activity tracking as the key functionality they
expect in a smartwatch.
UK consumers don’t seem to associate smartwatches
strongly with any one feature or benefit. Combined
with lower awareness compared to the US it’s
clear that manufacturers have to find ways to break
past the early adopter, tech savvy crowd.
More of a "look what I
have that you don't"
item
Source: On Device Research, September 2013
n=1500, US, UK smartphone users

10. 62%
50%
46%
39%
34%
29%
40%
45%
36%
46%
43%
25%
Sports, activity
tracking
Checking the time Notifications Calls and text
messages
Going on the internet A fashion item
US UK
Smartphone owners in the US associate smartwatches
most strongly with sports and activity tracking
Q: What would you say a smartwatch is mainly for?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

11. Alistair Hill
CEO, On Device Research

12. Fitness trackers, unlike smartwatches, are very clearly
associated with health and activity
Q: What would you say a fitness tracker is mainly for?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users
Health
monitoring
82%
A fashion item
9%
Sharing data
with friends
18%
Activity and
sleep tracking
61%

13. Come Christmas…
21% of those who have heard of
smartwatches plan to get one
That compares to 17% who plan to buy a fitness tracker

14. 12%
4%
6%
45%
34%
9% 8%
5%
42%
38%
Yes, buy one for myself Yes, buy one as a gift Yes, receive one as a
gift
I don't know yet No
US UK
1 in 5 plan to buy
or get it as a gift
Smartwatches face stiff competition from other
gadgets – tablets, fitness trackers – as a Christmas gift
Q: Do you plan to get a smartwatch by Christmas this year?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

15. Did you know…
The most expensive
smartwatch is the Swiss-
made Hyetis at $1,200.
The watch features
a 41 megapixel camera,
two times more than what
Canon’s pro-sumer level
model offers.

16. 83%
52%
37%
18%
15%
65%
48%
22% 22%
9%
I'm interested in
technology
For the benefits Want to replace
traditional watch
Buy as a gift Recommended by
someone
US UK
Interest in technology and gadgets is the main driver of interest
in smartwatches
Q: Why do you plan to get a smartwatch?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users

17. Price is key
CCS Insight estimates new watches
this autumn to cost between $200-
300.
That’s a hefty sum given many
consumers are used to getting
their smartphones “free” with a
contract.

18. Not everyone wants a
smartwatch. 36% say
they “don’t see a point”.

19. 35% 35%
27%
21%
20%
18%
12%
10%
40%
34%
15% 14%
13% 13%
15%
18%
I don't see the
point
Too expensive Wouldn't wear a
watch
Another gadget
higher on to-buy
list
Doesn't suit style
or age
Already have
enough gadgets
Haven't yet seen
a smartwatch I'd
like
Don't want to
replace
traditional watch
US UK
Source: On Device Research, September 2013
n=1568, US, UK smartphone users
There are many reasons not to buy a smartwatch, indifference
being the biggest challenge for manufacturers
Q: Why do you not plan to buy a smartwatch?

20. Google Glass has surprisingly high awareness for a product not
yet commercially available
Q: Have you heard of Google Glass?
Source: On Device Research, September 2013
n=1568, US, UK smartphone users
66%
NO
34%
YES
12%
7%
16%
11%
14%
19%
Yes, but not
interested
Yes, really excited
about it
Yes, following the
news
US UK

21. Ben Wood
Chief of Research
CCS Insight

22. On Device Research
uses the mobile internet
to gain access to consumer
opinions at any time,
place or country.

23. x
We have undertaken projects in
57 countries
And
Over 10 million people have
taken one of our mobile
surveys
www.ondeviceresearch.com

24. About CCS Insight
Founded in 1993, CCS Insight
is a leading provider of research
and advisory services to global
mobile and Internet companies,
helping them make sense of the
connected world.
www.ccsinsight.com