Source: Pebble.
The Pebble watch garnered almost 70,000 Kickstarter backers who raised more than $10 million for the project. Yes, million. The original goal was just $100,000. Its Facebook page has more than 33,000 likes and their Twitter following tops more than 24,000 followers. Sure, those social media stats may not matter much overall, but if you put together the grass-roots following Pebble has built along with the money they raised, you could consider all of those numbers concrete market research for a smartphone industry.
More than a decade in the making
Pebble and Sony, although their watches are innovative and intriguing, didn’t lead the way in connected watch technology. Many others began the journey a long time ago, and almost all have stumbled. Microsoft Corporation (NASDAQ:MSFT) released a watch called SPOT that synced calendar appointments, displayed weather information, and sent messages using an FM transmitter.
Obviously, Microsoft’s product didn’t take off, but that didn’t stop Samsung from trying not once, but twice to launch a connected watch. So, technically, the Samsung’s latest smartwatch announcement will be its third attempt at the market. The first watch never actually made it to launch, and the second one was only sold in France. Both watches came in at over $600 — not exactly the price point for mass market.
To be fair, past failed attempts aren’t a perfect predictor for future occurrences. Connected watches from the past couldn’t possibly compete with a product that could be built now, and current smartwatch prices aren’t nearly as high as in the past. But with smartwatches having been available from so many companies for years now, it’s possible the mass market has chosen to pass on such a device.
Waiting for an iWatch
It’s hard to tell whether Samsung will actually release a smartwatch or is just working on one just in case Apple is developing a watch. In true Apple form, investor and consumers don’t know whether Apple Inc.(NASDAQ:AAPL) is actually thinking about a smartwatch, testing one just for research, or simply not doing anything and letting the competition fret about what they think the company’s doing.
With Google Inc (NASDAQ:GOOG)‘s Glass expected to launch to consumers at the end of this year and Pebble already selling a wearable smartwatch, investors shouldn’t be skeptical that an iWatch, or something like it, wouldn’t connect with a large group of consumers. Determining the size of such an industry right now is a bit premature, though, since it doesn’t really exist yet. Smartwatches aren’t watches, and they’re not phones, so quantifying their market worth is simply speculation at this point. One thing is starting to become clear for investors, though: Wearable computing is on the cusp of turning into a real industry; the question is, who can make the product that consumers will actually open their wallets for?
The article Do Consumers Even Want a Smartwatch? originally appeared on Fool.com.
Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
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