Smart Watch Positioning in High-end Market, Complete ＂Independent＂ is Difficult to Achieve

With true wireless stereo (TWS) earbuds being a trend, many people are considering replacing smart phones with smart wearable devices (TWS earbuds + smart watches). In fact, smartphones are no longer purely functional machines. Even if TWS earbuds plus smart watch can bring a better user experience in some application scenarios, when being connected to the LTE network, the battery life of smart watch will directly smash the idea that the smart wearable device can be used independently.

E-SIM May not be Applied Fully

The idea of using smart watch without mobile phone is basically based on the use of e-SIM. Different from the traditional SIM card, e-SIM is directly integrated in the machine and cannot be removed. The carrier confirms the user's identity through the information on the e-SIM. In theory, e-SIM is equivalent to a separate SIM card, and the advantage is that the carrier can be switched at will while retaining basic information such as numbers.

But in practice, smart watches with built-in e-SIM do not have an independent "identity" on a global scale. In mainland China, although the Apple Watch cellular network version supports independent calls, it must share the same number with the mobile phone, that is, "one number and two terminals", and the smart watch is still the auxiliary of the mobile phone. This situation arises because carriers still dominate the communications industry and the status of them is reserved.

The information transfer and flow of funds brought by free switch will bring a lot of work to the carriers. If the e-SIM card function is fully utilized, the user can switch the carrier at any time, which may cause serious waste of service resources. In the short term, it is not necessary for the carrier to compromise with the user and the mobile phone manufacturer. At present, if users in mainland China want to switch carrier, they must make appointments in advance and confirm that they meet the standards of the carrier, and can only switch once in four months.

In addition, the e-SIM card will not be subject to the carrier's jurisdiction when fully applied, and users will not be able to freeze the number through the carrier. When a device such as a smart watch is lost, the user completely loses control of the number. In the society where mobile payment is developed, the loss of control of numbers will pose a threat to the security of users' property. At present, this issue has not been resolved.

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Hard to get rid of Auxiliary identity

In the concept of independent use, smart watch can optimize user experience in making calls and mobile payments, sending and receiving information, especially on the road or in exercise. The ability to achieve such optimization is precisely because of the small size of the smart watch, but the small size also makes it difficult for smart watch to replace the smart phone. A smart watch cannot have the same size display as a mobile phone, nor can it hold the same size battery and memory card.

Take Apple's latest Apple Watch Series 5 and iPhone 11 series as the example. The Apple Watch display area is up to 977 square millimeters, while the iPhone's display area is at least 8308 square millimeters. On the small screen of a smart watch, the function of the smartphone cannot be fully realized.

Endurance Time of Smart Watch is Short When Used Alone

Yet, the biggest obstacle to the independent use of smart watch is not the screen, but the endurance ability after accessing the network. The Apple Watch Series 5 has a maximum battery capacity of 296mAh and can last up to 18 hours when used with a mobile phone. If Apple Watch should perform tasks such as making calls without the connection with mobile phone, it must connect to the LTE network. According to the data provided by Apple, Apple Watch can only be used for less than 2 hours after accessing the LTE network. Smart watches can only play a supporting role before solving the problem of endurance time.

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Positioning in High-end Market

The pricing of smart watch manufacturers is equal to directly abandoning most markets. Apple released its first-generation Apple Watch in 2014, with a minimum price of 349 US dollars. Samsung’s smart watch, Gear Sport, also sold for more than 200 US dollars. Such high prices are not a flash in the pan. The new Apple Watch released in 2019 has a minimum price of 399 US dollars, while Samsung’s new Galaxy Watch Active 2 has a minimum price of 229 US dollars.

Smart Bands have Advantages in Both Price and Battery life

Normally, the peak of shipments is after the releasement, but shipments will continue to fall after a short period. This situation is the same in the smart watch industry. Even Apple, which has a large user base, has only maintained a quarterly increase in shipments after the launch of new product. Smart watch manufacturers need to create marketing points for continued profitability, such as Apple's "three-ring workout" and Samsung's maintaining of traditional outlook.

Series 3 Created the Summit of Apple Watch Shipments