A new study from TNS reveals that price is the main barrier holding back consumers from buying wearable devices.
Here are the key insights:
- Over half of U.S. consumers cite price as the number one reason they would not buy a wearable computer.
- 30-one per cent said that privacy was among their top reasons for not buying wearables.
- 70-nine per cent of men and 70% of women said they were aware of at least one wearable device.
- Despite high awareness, only 9% said they were interested in wearables.
- Thirteen per cent said looking silly was a reason not to buy wearables.
The data comes from a weekly survey of 1,000 U.S. adults by the market information company TNS.
The data corroborates our previous hypothesis that the $US300 Samsung Galaxy Gear is priced too high to catch on with consumers.
At $US200, Sony’s recently released Smartwatch 2 is more reasonably priced than the Galaxy Gear, but remains above the $100 average selling price that we used for our estimate of the smartwatch market. One advantage of the Smartwatch 2 is that it is compatible with any Android phone running Ice Cream Sandwich, while the Galaxy Gear will only be compatible with a handful of Samsung devices.
Price concerns aside, we believe there is a huge market for wearables.
The $US150 Pebble smartwatch is evidence that conservatively priced devices can enjoy substantial success. As of July 2013, there were 275,000 orders for the Pebble smartwatch, despite its humble origins as a Kickstarter project.
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