Wearables – Missing link

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  • Key to wearables still missing
  • The wearables space is on fire today with talk of new devices from Fitbit as well as yet another potential iWatch.
  • Fitbit has applied for trademarks for a Fitbit Surge, a Fitbit Charge and PurePulse.
  • The most significant of the three is the PurePulse which will be a wrist mounted optical heart rate monitor that also monitors activity adding another dimension to the data generated.
  • The use of a heart rate helps the device understand activity intensity as well as exertion.
  • This gives a much better picture of user activity and makes the pedometer function much more useful.
  • The Fitbit Charge is an upmarket pedometer aimed at runners with GPS, atmospheric sensors and the corresponding functionality, while the Fitbit Surge is an updated pedometer aimed at the more casual end of the market.
  • The PurePulse is significant as it will aim to offer continuous heart rate monitoring from a wrist mounted, light based sensor.
  • To date a number of companies have tried to offer this functionality but the limitations of using light to monitor a heart rate have rendered the devices worse than useless.
  • The Galaxy Gear Fit only gives a heart rate reading when a button is pressed as the device is incapable of holding the signal on a continuous basis.
  • If Fitbit has managed to solve this problem, where everyone else has failed, then it may have a hit on its hands.
  • Given its track record in hardware reliability and the total failure of other devices, my hopes are not high.
  • Hence, I see no reason to change the view that wearables are a solution looking for a problem and the view that technology for biosensors remains a long way away from being mass market ready. (see here)
  • Elsewhere, yet another iWatch prototype has emerged, this time manufactured by Quanta with a 2.5 inch screen.
  • This device also features a heart rate monitor and will also feature wireless charging.
  • The device is reportedly (Reuters) going into mass production in July which will be the key signal that this is a device that will actually be launched.
  • Unless Apple has figured out a use case for this device that makes it a must have, it is likely to be a failure.
  • This is because to date the limitations of a wrist mounted device have vastly outweighed any real benefit.
  • If this device is based on iOS, then the battery life is likely to be awful.
  • Net net, I see nothing hear that is likely to make me reassess my view of the wearables segment and would not be surprised Apple decline to launch this latest prototype.
  • I need to see a huge improvement in reliability from Fitbit as well as a real solution to the heart rate monitoring problem in order to think that this segment might start moving in the near future.

 

 

 

 

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.