Peak smartwatch? Time for a strategy shift

Smartwatches have quickly gained popularity, gracing the wrists of millions. These devices offer more than just timekeeping and fitness monitoring; they’ve evolved into personal assistants. Users value their multi-functionality, utilizing them for calendars, health metrics, reminders, and more. In addition, they’ve become a symbol of modern luxury. However, the latest wave of TUP confirms that the smartwatch market penetration seems to have reached a peak or plateau. Now, it’s largely about replacing older models rather than attracting first-time users. Therefore, manufacturers need to adapt their strategies, focusing less on expanding their user base and more on meeting the needs of existing customers.

These TUP tables report on the number and percentage of online adults regularly using a smartwatch such as an Apple Watch. They also include the number who are planning to purchase one within the coming 12 months.

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Replacement versus growth markets

The dynamics of replacement markets are very different from those dominated by 1st-time buyers or others that primarily include users holding onto their technology. Each technology product is in its unique phase of adoption, with very different positions for smartphones, computers, tablets, and smartwatches.

This TUPdate details consumers’ purchase intentions in the US, Germany, the UK, and Japan. The products analyzed include computers, tablets, smartwatches, printers, and others. For each product category, the analysis splits users into four categories: replacing or adding to what they have, 1st-time buyers, those actively using the technology without plans to update it, and the uninvolved.

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UK tech buyers freshen up while China’s elites delay

The global landscape has witnessed significant shifts in consumer purchasing behavior due to the impact of the pandemic and broader economic changes. This transformation extends to the acquisition of tech products such as smartphones, computers, tablets, and game consoles. With the rapid transition to remote work, many individuals proactively invested in personal computing devices to enhance their productivity, rather than relying on their employers for equipment provision.

Conversely, individuals facing reduced working hours or economic uncertainty opted to postpone their tech purchases. On a global scale, the mean age of a technology user’s primary device has exhibited relative stability, averaging at 2.1 years old over the past five years. However, a closer examination reveals notable variations across different countries.

The affluent and highly educated among China’s population has consistently maintained access to the latest tech devices. Nevertheless, a recent delay in 2023 has cast uncertainty on their leading position, potentially aligning them with the global average in the near future. In contrast, consumers in the UK, who initially deferred tech device purchases, have demonstrated a two-year consecutive uptick in acquisitions. Consequently, their average device age now ranks second among surveyed countries.

Meanwhile, online adults in Germany and Japan have displayed a penchant for holding onto their primary devices longer compared to their international counterparts. These nuanced trends offer valuable insights for technology marketers, researchers, analysts, and industry professionals seeking to navigate evolving consumer preferences and market dynamics. Report [TUP_doc_2023_0824_year] in TUP Lenses: Devices; PCs; Mobile Phones; Tablets

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Usage guidelines: This document may be freely shared within and outside your organization in its entirety and unaltered. It may not be used with a generative AI system without separate licensing and express written permission. To share or quote excerpts, please contact MetaFacts.

Replacement versus growth markets

The dynamics of replacement markets are very different from those dominated by 1st-time buyers or others that primarily include users holding onto their technology. Each technology product is in its unique phase of adoption, with very different positions for smartphones, computers, tablets, and smartwatches.

This TUPdate details consumers’ purchase intentions in the US, Germany, the UK, and Japan. The products analyzed include computers, tablets, smartwatches, printers, and others. For each product category, the analysis splits users into four categories: replacing or adding to what they have, 1st-time buyers, those actively using the technology without plans to update it, and the uninvolved.

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Usage guidelines: This document may be freely shared within and outside your organization in its entirety and unaltered. It may not be used with a generative AI system without separate licensing and express written permission. To share or quote excerpts, please contact MetaFacts.

American first-time and repeat buyer purchase plans

As economic shifts, supply chain issues, and the effects of the pandemic linger, Americans continue to express their interest in technology products. However, their current purchase plans are all over the map, with several vital products experiencing a collapse in buyer interest. Tablets and smartwatches are looking up, printers down, and wireless item trackers are flat as consumers reel through their ups and downs.
This MetaFAQs reports on the purchase plans of online Americans for a smartwatch, printer, smartphone (iPhone or Android), wireless item tracker, home computer, fitness tracker, or tablet. The analysis splits 1st-time buyers from repeat buyers while also reporting on the number of current users without plans and those out of the market.

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Usage guidelines: This document may be freely shared within and outside your organization in its entirety and unaltered. It may not be used with a generative AI system without separate licensing and express written permission. To share or quote excerpts, please contact MetaFacts.