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Apple Watch teardown shows winning chips

Posted: 30 Jun 2015     Print Version  Bookmark and Share

Keywords:Apple Watch  wearable  healthcare 

Apple Watch is currently the leader in the wearables market, which is expected to boom by 2020, according to Yole Developpement. Several leading chipmakers, revealed in Yole's teardown, are expected to benefit from this.

The good news for the winners of the design slots—STMicroelectronics and NXP win two chip design slots each and AMS and Dialog Semiconductor one each—is that Yole reckons the wearable electronic equipment market is not just a gimmick and will grow steadily. Yole states that the wearable industry will reach 295 million units in 2020 with a market value of $90 billion.

However, the majority of this market will be consumer applications with healthcare picking up 75 million units of the annual market in 2020. Industrial and military applications will be yet fewer, about 10 million units in 2020, Yole reckons.

This strong consumer growth market needs to be squared away with a survey that indicates about 99 per cent of wearable electronics owners stop using them within 6 months. Nearly 50 per cent stop using their wearables within one month, according to the report by Chinese Internet service portal, Tencent.

Wearables application

Wearables application breakdown 2012 to 2014. (Source: Yole Developpement)

Impulse buying and fashion can drive a market, which may explain why Yole thinks the wearables market in 2015 is going to be worth about $20 billion as consumer wearable equipment makes a significant spurt of growth to go past the traditional medical wearables such as the hearing aid. The consumer wearables market is mainly fitness bands and smart watches.

The healthcare market, which covers devices like hearing aids, blood pressure monitors and back monitor sensors, is growing more slowly and has lower numbers but with higher value.

- Peter Clarke
  EE Times Europe

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