Smart watch market was not well formed until the end of last year. However, in Berlin, Germany IFA (Internationale Funkaustellung), smart watch made a great leap and positioned itself as present rather than future in the IT industry. The smart watch market is now expected to grow from 7 million devices in 2014 to 55 million devices by 2017.
It was Sony who initiated smart watch business but now LG and Samsung lead the technology of smart watches. LG introduced its strategic smart watch “LG G Watch R” while Samsung introduced its sixth smart watch “Gear S” in the birch of IFA. Nevertheless, there is big difference between LG and Samsung smart watches. This difference draws indicates how it will affect the two companies strategies and sales in the future.
Samsung who has a 70 percent share in smart watch market in the second quarter of 2014 is not seeing smart watch as a watch. Samsung defines it “not a watch but a smart device.”
“Since smart watch is wearing on wrist, so, we may call it a watch but our smart watch functions in a very different way,” said Lee YH, SVP of Samsung.
Samsung’s endeavours applying call and other various functions in the smart watch, and it thinks recognition of smart watch as smart device rather than a watch will help Samsung’s business in a better way.
Meanwhile, LG considers and highlights that “G Watch R” is pursuing real watch rather than a smart device. As a follower in the market, LG’s efforts to induce general watch users to its “G Watch R” gives more benefits than competing against other smart device users. LG is convinced that these strategies will help gain a major share in the market.
This subtle difference between LG and Samsung hasn’t brought in any tangible outcome yet. However, in an August survey research executed by Cetizen, one of the influential IT communities in Korea, it was revealed what users are really looking for with a smart watch. Based on their survey, G Watch overwhelmingly beat Samsung’s Gear S by gaining 557 points (78 percent). Voters who gave point to G Watch preferred its design and compatibility of OS (operation system) while users that selected Gear S preferred its manufacturing know-how.
John Jun is Mobile Marketing Consultant for Mileage Communications in Myanmar. He can be reached at firstname.lastname@example.org.