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CES 2020 : Day 2 - Smartwatches

by Steven Waltzer | Jan 08, 2020

Strategy Analytics Wearables Service brings you daily coverage of the new decade's largest consumer electronics convention: CES 2020. 

Our day 1 coverage can be accessed as below:
CES 2020: Day 1 - What to Expect in Wearables

Our day 2 blog will focus on smartwatch announcements from the show floor.  Smartwatches are those devices with a high level OS capable of running third party apps.  Major announcements include:

  • Suunto has surprised by announcing the Suunto 7.It is their first watch powered by Wear OS and therefore capable of 3rd party apps.The device maintains a focus on sports and fitness, offering over 70 workout modes, GPS (with offline mapping capability), heart rate tracking, sleep tracking, an altimeter, and of course everything else offered by Wear OS – such as Google Assistant, Google Fit, and Google Pay .The device will be available at the end of January for a retail price of $499.
  • Fossil Group has added 2 new Wear OS powered smartwatches to their line-up - the Skagen Flaster 3 and Diesel Fadelite.
    • The Skagen Flaster 3 benefits from Wear OS and the Snapdragon Wear 3100, and has added a speaker for taking calls and providing audible alerts, as well as including GPS, NFC, and swim proofing for up to 30 meters.The attractive design mirrors the Flaster 2, and also adds a special DJ Kygo edition (shipping in the Spring) and more strap options.The standard Flaster 3 will be available today at a retail price of $295.
    • The Diesel Fadelite sports a smaller (than Diesel’s prior large smartwatch offerings) 43mm casing and gender neutral coloring, utilizing Qualcomm’s Snapdragon Wear 3100 processor, along with the same Wear OS experience found on prior models. It will be available in March for a retail price of $275.

Smartwatch sales are expected to grow 24% in 2020, and are neck-in-neck with fitness bands for full year 2019 volumes. This comes after smartwatches surpassed fitness bands for the first time ever for full year 2018 (as we predicted in 2015). By operating system, we expect Wear OS to gain share this year due to renewed investment in the platform, such as the acquisition of Fitbit and a growing list of partners running Wear OS on their devices.  In the long-run Strategy Analytics contends that betting on fitness bands over smartwatches is analogous to betting on feature phones over smartphones a decade ago.

Exhibit 1: Fossil Group’s Diesel Fadelite

Previous Post: CES 2020: Day 1 - What to Expect in Wearables | Next Post: CES 2020: Day 3 - Feature Watches

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