The 4G smart watch (except for children’s watches) is the focus of the market. Since HUAWEI launched its second generation smart watch in 2017, 4G smart watches, except for children’s watches, have grown steadily quarter by quarter. This quarter is driven by the third generation smart watch of the apple, and the market is growing significantly. It is expected to remain high growth in the future. The main reasons are the following three points:
The innovation of the operator’s business model will boost the rapid growth of 4G smart watches. 4G smart watch is subject to volume limitation, and eSIM card scheme is used instead of entity SIM card. The promotion of this scheme is inseparable from operators’ optimization in user experience and user experience. Recently, China Unicom launched a card dual terminal business in part of the pilot city, through the eSIM card binding mobile phone number, common tariff packages in the form of the third generation of Apple watches can support the independent communication function in some areas, this major initiative will not only promote the apple watch sales, but also provides more space for intelligent HUAWEI watches and other brands in the field of 4G development.
The sinking of the channel will provide more market opportunities for the growth of 4G smart watches. In the fourth quarter of 2017, retail sales of smart watches accounted for 44.3%, an increase of 9.4% over the same period. 4G smart watches not only have advantages in profit margins, but also are more attractive to consumers in experiential buying process. With the rapid upgrading of purchasing power in the three or four tier cities and even rural areas, the channel sink is deepening. 4G smart watches will expand broader market opportunities besides large and medium-sized urban consumers.