May 2015

Function Before Fashion: Navigating the Developing Smartwatch Market

The wearables landscape is crowded with countless competing devices, all with different strengths and weakness when it comes to functionality and wearability. Basis, a wearables company that has been struggling to delight consumers, recently announced the more fashionable Peak Titanium Edition smartwatch in an effort to appeal to a new segment of consumers. While fashion is becoming increasingly important in the wearables market as a whole, Basis users have more basic usage complaints that must be addressed in addition to exterior improvements, if Basis is to join the ranks of Microsoft, Motorola, and Pebble as a top delighter.

The Basis Titanium Edition touts an updated titanium frame and cognac leather strap, but the less flashy software updates are likely to have a larger impact upon improving the consumer experience. This emphasis on style appears to be an attempt to match the fashion conscious design of some of the most delightful wearables, but Basis consumers have had more pressing complaints about availability of data and app compatibility, placing concern about style below these basic usage matters.

Though the new flashy fashion update is stealing headlines, the big news for users is that Basis also updated its app to allow users to share their Basis data with “either Apple’s Health app or Google Fit.” This update increases Basis connectivity and allows users to make the most of their device by syncing it with others.

While fashion has recently become a hot topic in wearables creation due to Apple’s unyielding influence, companies must be aware that a wearable device must first offer a solid, usable interface to ensure that it will make a difference in the life of the user, before focusing on glitz and glamor. Companies like Motorola, Pebble, and Microsoft are fusing function with fashion to create devices consumers want to use.

Fitbit maintains majority mindshare of the wearables market, but as other wearables companies are refining the smartwatch, the fitness band giant is losing clout in this developing subset. Learn more about Fitbit’s vulnerabilities ahead of their IPO in our Fitbit Demand Report.

Argus Insights is constantly tracking consumer feedback in the wearables market to determine which brands are winning, which attributes are top of mind, and most importantly, why. Clients of our full services have access to real time data and insights, please contact us with any questions.

Cisco Touts Profits as Proof of SDN Prowess

Looking to social conversation about Software Defined Networks (SDN) and Network Function Virtualization (NFV), we found that Cisco saw the most attention last week not only for their reported 61% profit margins, but also for their CEO’s unwavering confidence and subsequent dismissal of the competition.

While Venture Beat entertained the argument that lower cost approaches to SDN could render Cisco’s “expensive custom software and network gear” unnecessary, their soon to be ex-CEO Chambers dismisses developments like VMWare’s NSX solution, citing Cisco’s financial results as “proof that SDN won’t hurt Cisco.”

Though Cisco’s current CEO sees no threat in VMWare’s NSX, a debate is present in the market to determine “Which is the Real SDN Leader?” Cisco’s ACI or VMWare’s NSX. Cisco’s President Rob Lloyd argues that VMWare is lagging behind in terms of implementation, making ACI a more “complete solution.”

Cisco and VMWare led social conversation about SDN & NFV last week

While Cisco is asserting their dominance over SDN by touting the prowess of their products over the competition, success will ultimately depend on adoption. Cisco currently has the profits to back up their claims, but innovation is occurring, which is allowing other companies to offer cheaper solutions.

Argus Insights keeps track of developments in conversation in the SDN and NFV markets weekly to report which products and brands see the most mindshare. and why. Sign up for our free Weekly SDN & NFV Newsletter here. Clients of our full services have access to our real time data and insights; please contact us with any questions.

Microsoft Leads ‘the Little Guys’ in the Wearables Charge Against Fitbit

The market for wearable technology is constantly evolving. While Fitbit has established dominance and continues to monopolize the attention of wearable consumers, various smaller companies are finding their own niche, with endless attempts to improve the role of technology in our lives. Whether it be a simple, efficient smartwatch from Pebble, an accurate fitness tracker from Microsoft, or a cleverly constructed piece of cardboard from Google, companies are finding ways to push wearable technology to the forefront of consumer technology. Sign up here to receive a monthly demand snapshot.

Apple announced the much anticipated Apple Watch in September, after which consumers looked to other brands for their holiday shopping needs. The holiday season brought a large boost in wearables attention, but this quickly fell off as the gift giving ended. Several people are now waiting to receive their backlogged Apple Watch orders, so this downward trend can be expected to continue as consumers wait for Apple to catch up with demand.

rev percent — Review Percentage charts display the changes in the percentage of mindshare brands have in relation to each other

While consumers expanded their horizons by looking to several brands over the holiday season, Fitbit stole back attention post holiday to dominate mindshare in this crowded market. Garmin is one of the only other wearables companies to see increasing mindshare, while Microsoft, Misfit, and Pivotal Living saw short lived boosts, but are now losing attention.

tqw — Brand Threat Quadrants plot review volume against consumer delight to demonstrate month to month changes in buzz and delight for selected brands

Microsoft, Otium, Pebble, and Motorola lead the global wearables market in terms of delight, but Fitbit is the overall market leader as they see the largest share of positive attention. While several people are still waiting to get their hands (and wrists) on the Apple Watch, initial consumer reviews situate the much-anticipated device alongside leading brands in terms of delight, but so far, the Apple Watch has done nothing to differentiate itself from the existing hoard of sensor filled smartwatches.

funnel — Attribute Funnels rank features by importance, spread across by negative (red) positive (green) and neutral (gray) sentiment

Smartwatch users are interested in using their watches to replace certain smartphone functions, as things like alerting, texting, and navigation are top of mind. Fitness band users, however, are focused primarily on exercise related functionality, with little interest in smartphone replacement. Despite the type functionality users seek, battery life remains a top concern and lead detractor.

There is a rich conversation about the potential of wearable technology in several different fields and forms on social media. Relative social buzz indicates the largest amount of interest is in smartwatches, but there is a growing awareness of the potential for use of wearables in the healthcare industry.

With so many brands emerging in the Wearables Market, market leaders like Fitbit and Garmin are seeing consumer attention slowly split off. Find out all you need to know about the evolution of consumer demand in Fitbit and predicted future performance in the wake of developing technology, ahead of their IPO, in an exclusive Argus Insights Fitbit Demand Report.

This monthly Wearables Demand Snapshot is your one stop for a consistent, comprehensive overview of the Wearables Market, sign up for a free monthly subscription here, and please, contact us with any questions or feedback that may arise about this report.