Wearables, smartphones to 'dominate' Christmas

Cape Town – Despite fears that the smartphone market is tanking, a research firm believes that the consumer market will show healthy growth as shoppers spend cash on tech during the holiday season.

According to Gartner, the smartphones will be a hot Christmas purchase.

“Smartphones and wearables will be on top of the shopping list this season. We expect to end 2015 with 14.5% year-on-year smartphone growth, with 1.4 billion units shipped globally,” said Annette Zimmermann, research director at Gartner.

That bullish view differs from the International Data Corporation, which suggests that the slowing Chinese economy will reduce the smartphone market to just 9.8% growth in 2015.

Zimmerman acknowledged the Chinese economic slowdown, but argued that consumers would increasingly shift to smart wearable devices.

“While tablets have been popular gifts the past couple years, some of the excitement and spending will shift to wearables this season. Our user survey revealed that adoption of fitness trackers in the US nearly doubled from 2014 to 2015.”

Fitness trackers

READ: SA's online festive spending patterns revealed

Apple hinted at the success of its wearable soon after its launch.

"We had an amazing quarter, with iPhone revenue up 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," said CEO Tim Cook at the time.

Zimmerman said that fitness focused wearables would make a strong impact this year.

“Fitness trackers will still outsell smart watches, partly because of their lower price tags, but also because the use case for those devices is clearer for most consumers than a smart watch.

“Among the popular gifts this season will be various Fitbit models, The Apple Watch Sport, Jawbone Up, Moto 360 and Pebble. Both Samsung and Lenovo had special Black Friday offers for their smartwatch products, so that could help sales as well,” she added.

At the recent IFA in Berlin, Garmin revealed that their Vivoactive device was dedicated to athletes.

"This watch is aimed at tri-athletes, runners and sports people," a spokesperson told Fin24.

- Follow Duncan on Twitter

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders