A new report released by US-based electronics market research company Cackle suggests that smartwatches are priced too high for most consumers and their appeal is limited.
The latest 47-page Smartwatch Research report focuses on a number of smartwatch and activity tracking brands, including Apple, Garmin, Pebble, Samsung, Motorola and Jawbone.
Taking a macro look at who is buying smartwatches and why, their functions, usability and consumer feedback on price, colour and apps, the report has found that – in North America in particular – smartwatches should ideally retail for under US$100 (£76). Anything more and the customer base is limited.
In a statement from the report it is noted: “Smartwatches today are too expensive for today’s consumer. If an OEM is looking to retail a smartwatch for over $250 in North America, it probably will not sell very well. Ideally, it would retail for under $100. We believe the only people who will be buying anything above $250 really are the wealthier individuals; the rest of the population will shy away from expensive gadgets unless there is another element to them.”
The report also outlines consumer feedback, stating that ‘smartwatches are considered by many to be little more than ‘toys’ for ‘gadget geeks’ and certain ‘early adopters’ in the product life cycle’.
The study also found the value that smartwatches are perceived to add to the wearer’s lifestyle is negligible, such as being able to glance at their watch and quickly see an e-mail.
Cackle has also studied the latest market trends in wearable tech, virtual reality and smart jewellery.