The emerging market of wearable computing gadgets will inevitably have many similarities with existing markets of portable computing devices. Nonetheless, since wearable electronics will not be as universal as smartphones, tablets or notebooks, it will be impossible for a couple of companies to cover all needs of the market. As a result, expect various interactive glasses and smart wrist watches from dozens of companies.
Although smartphones are on track to replace nearly all mobile phones on the market by the end of the decade and have clearly become mass products these days, half of the world’s smartphones are made by Apple and Samsung. Moreover, 90% of smartphone market profits are shared by these two companies. Wearable computing devices in the forms of smartwatches or interactive glasses are about to enter the market and become the next big thing. But the emerging market will be different from the current smartphone space and therefore Apple and Samsung will not be able to create duopoly there, believes the chief executive of Broadcom, the company that sells chips to various makers of mobile gadgets.
“There are, like, two companies that make half of all the smartphones on the planet. I think wearables are going to be different. I think wearables are going to be different. We do expect that a significant number of wearables coming out are going to have Broadcom silicon in them,” said Scott McGregor, chief executive officer of Broadcom, reports AllThingsD web-site.
While companies like Apple, Google, Samsung and many other can create breakthrough wearable gadgets that will share the “one size fits all” paradigm of Apple iPhone, the head of Broadcom remains skeptic about such a possibility.
“It’s a little premature to judge that. It could go both ways," said Mr. McGregor.
Experts predict nearly 15 million wearable smart devices will be sold this year, and nearly 70 million by 2017.