Wearables

CES 2020: Wearables Review

Wearable Device Ecosystem (WDE)

Report Summary

We visited CES 2020 in Las Vegas, US, this week. We analyze the top wearables,
platforms and trends from the event. Key brands that had a good show include
Huami, Fossil, Omron and Panasonic.

January 9, 2020
Neil Mawston
Tel: +44 1908 423 628
Email: NMawston@strategyanalytics.com

www.strategyanalytics.com
 Wearables

Executive Summary
We visited CES 2020 in Las Vegas, US, this week. We analyze the top wearables, platforms and trends from the
event. Key brands that had a good show include Huami, Fossil, Omron and Panasonic.

Analysis

Consumer Electronics Show (CES) has been held in Las Vegas, US, from Jan 7-10, 2020.

We visited the event and walked the floor. These are the top devices, platforms and trends you need to know about.

1. HUAMI

Huami, maker of Amazfit wearables, and longtime ODM for Xiaomi Mi Band trackers, is keen to wow American buyers.

Amazfit T-Rex is a ruggedized, outdoor, muilti-sports watch offering military-grade durability (MIL-STD-810G), 20-day
battery life, and a midrange pricepoint around US$140 retail. While the material quality is noticeably cheaper than
high-end competitors, like Garmin, and its styling is rather clunky, Huami is quietly differentiating with “good enough”
products at affordable pricing.

Amazfit Bip S is an everyday smartwatch with copycat styling very similar to Apple Watch. The device sports GPS
tracking, heartrate monitor, and adds better water-resistance than its predecessor (now up to 5ATM) -- all for a price
below US$100 retail.

Amazfit PowerBuds are fashion-led Bluetooth earbuds, optimized for gym fanatics with bass-heavy music speakers,
voice control, IP55 sweatproof design, and PPG optical heartrate monitor coupled to an inbuilt alert system that
sounds out loud when your heartbeat exceeds a preset value. The buds blend attractive design, entertainment and
preventive healthcare in one single package for a mid-to-high price of US$100 retail. They launch in February.

Amazfit ZenBuds are sleepbuds and workbuds. They come with soothing sounds built-in, which help you rest and fall
asleep more easily, or blockout the noise around you to concentrate in the office. The devices track your sleep quality,
heartrate, and can deliver breathing instructions to attain mindfulness or meditate, to achieve zen. Styling is hearing-
aid-like, which may deter some, and they are expensive at US$150 retail. Volumes will therefore be niche, but their
skin-friendly, secure-fit design will no doubt find fans among rich consumers with mild insomnia who want better sleep.

2. SUUNTO

Suunto, of Finland, surprised with its first Wear OS device, the Suunto 7. It is capable of supporting third-party apps.
The device maintains a focus on sports and fitness, offering over 70 workout modes, GPS, offline mapping, heartrate
tracking, sleep tracking, an altimeter, and of course everything else offered by Wear OS -- such as Google Assistant,
Google Fit, and Google Pay .The device will be available at the end of January for a rather pricey US$500 retail.

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Exhibit 1: Amazfit Bluetooth ZenBuds for Better Sleep

3. FOSSIL

Fossil added two new smartwatches.

Skagen Falster 3 benefits from Wear OS and Snapdragon Wear 3100. It has a speaker for taking phonecalls and
providing audible alerts, as well as including GPS, NFC, and swimproofing for up to 30 meters. The circular design
mirrors the Falster 2, and also adds a special DJ Kygo edition (shipping in the spring) and more wrist-strap options.
The standard Falster 3 is available immediately at mid-to-high US$300 retail.

Diesel Fadelite sports a smaller (than Diesel’s prior large smartwatch offerings) 43mm casing and gender-neutral
coloring, utilizing Qualcomm’s Snapdragon Wear 3100 processor, along with the same Wear OS experience found
on prior models. It will be available in March in North America for US$275 retail.

4. WITHINGS

Withings has announced the ScanWatch hybrid feature watch. The ScanWatch focuses on health tracking and most
notably adds sleep detection in combination with ECG and SpO2 (oxygen) sensors, in order to detect ailments such
as sleep apnea and heart arrhythmia. The device offers 30-day battery life and an analogue movement along with a
small PMOLED display to show heartrate, steps, notifications, etc. ScanWatch will be offered with black or white faces
and two sizes, a 38mm case for US$250 retail, and a 42mm case for US$300 retail. The previous-generation Move
ECG watch, which was announced at CES 2019, had struggled to gain FDA clearance, so it remains to be seen if the
same regulatory clearance will be granted for the ScanWatch.

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 Wearables

5. OMRON

Omron showcased its HeartGuide smartwatch, featuring FDA clearance for taking blood-pressure readings directly
from the lower-wrist, and also Omron Complete (upper-arm), which takes EKG readings in addition to blood pressure.
The HeartGuide device sports 7-day battery, three sizes, and will cost US$500 retail for US consumers only. Achieving
FDA-clearance is a major milestone in the road towards realizing the healthcare revenue potential of wearables.

6. OMATE

The (badly named) x Nash O6L is a child-tracker watch, uniquely sporting a virtual SIM card with prepaid cellular
service via a partnership with Skyroam. Three years of unlimited 4G videocalls are included with the device, as well
as unlimited voice-calls, voice messages, text messaging and location services. Omate is pushing its WAAS
(wearables as a service) business model to the mass-market and is the first major company to bundle prepaid service
with a wearable device at the point-of-purchase -- a trend Strategy Analytics has been predicting for several years.
The Omate x Nash O6L will be available in the US from March, and in Mexico on Amazon at a discounted price of
US$179 retail (normally US$229). An EU version is also expected in Q2 2020. Carriers, like Orange, will be interested.

7. PANASONIC

Panasonic and Kopin introduced VR eyeglasses (not a headset) with micro-OLED panels and HDR video quality that
take virtual reality closer to a mainstream audience. The formfactor looks like normal mountaineering sunglasses,
they are not too large for the head, and the design is (mostly) socially acceptable. For now, they are a prototype,
aimed initially at the enterprise segment, such as sports events or travel, but we wouldn’t be surprised to see them
end up in the consumer category in a few years, such as 5G gaming.

Exhibit 2: Panasonic VR Eyeglasses with HDR Quality

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8. HEALTHCARE

This is the big hope for wearables in the 2020s. Fitness and sports are big -- casual and professional healthcare can
be even bigger. Healthcare is a multi-trillion-dollar industry worldwide and many are talking about it in meetings.
Plenty of products point to the future here, such as Withings ScanWatch with ECG, and Omron HeartGuide with
FDA-approved blood-pressure tracking by smartwatch.

9. SLEEP

Wearables are not just daytime devices -- they can also become indispensable companions in the evening and night.
The modern world of fast pace, long work hours and personal gadget addictions are making it ever harder for millions
to rest, switch off, or sleep. Wearables can play a key role in reducing what some call the “sleep crisis”, by providing
sleep-friendly products that monitor and aid restfulness. Wearables, like Amazfit ZenBuds and others, can help you
relax and recuperate, and may possibly even prevent some longterm health problems.

10. SMARTWATCHES FOR CHILDREN

Child-tracker watches once again made a splash at CES this year. The industry continues to plug away at this
category, because it is an emotive segment that could potentially deliver longterm loyalty among parents and kids.
The best example we saw here was the Coolpad Dyno 2 smartwatch, eliminating the range’s previous “flat tire” design
in favor of a rounded screen, and switching to gender-neutral coloring. Kiddy smartwatches already have a sizeable
following in Asia, particularly China and India, and many firms are hoping to bring the trend to North America and
Europe.

Summary & Conclusions

Huami, Fossil, Omron and Panasonic were among the star wearables performers at CES 2020.

Huami is notably active with Amazfit, because it wants to expand beyond the (struggling) relationship with Xiaomi.

Panasonic’s VR eyeglasses take virtual reality closer to the mainstream and point a finger toward the future.

Fitness, sports, healthcare, sleepcare and childcare were the five main wearable themes at CES 2020.

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 Wearables

Contact Information

The author of this Insight, Neil Mawston, can be reached at NMawston@strategyanalytics.com, or by using
the following telephone number: +44 1908 423 628.

Other Contacts:

Steven Waltzer +1 617 614 0758 SWaltzer@strategyanalytics.com

Ken Hyers +1 617 614 0757 KHyers@strategyanalytics.com

Linda Sui +1 617 614 0735 LSui@strategyanalytics.com

Woody Oh +44 1908 423 665 WOh@strategyanalytics.com

Rajeev Nair +44 1908 423 629 RNair@strategyanalytics.com

Ville-Petteri Ukonaho +44 1908 423 634 VUkonaho@strategyanalytics.com

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