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MEA wearable sales on the rise

Lauren Kate Rawlins
By Lauren Kate Rawlins, ITWeb digital and innovation contributor.
Johannesburg, 11 Jul 2016
Basic wearables, like fitness trackers, dominate the overall MEA wearables market.
Basic wearables, like fitness trackers, dominate the overall MEA wearables market.

People in the Middle East and Africa (MEA) regions are buying more wearable devices, according to data from International Data Corporation (IDC).

The global research firm says the MEA wearables market experienced a 65.3% year-on-year growth in shipments in the first quarter of this year.

IDC tracks seven major countries across MEA, including SA, and shipments into these countries totalled 419 925 units during the period.

World Wide Worx MD, Arthur Goldstuck says: "One can sum up the popularity of wearables in South Africa in one word: fitness."

The firm differentiates between smart and basic wearables. It says smart wearables, like the Apple Watch, are classified as devices capable of running third-party applications. Basic wearables, such as the Fitbit Charge HR, are not capable of running third-party applications.

Goldstuck says in SA there are a number of factors driving sales of wearable fitness trackers.

"Firstly, it is a very fitness-conscious country with a strong running and gym culture, which makes for a great target market.

"Secondly, the medical aid rewards programmes are pushing activity monitors hard as a convenient way to earn points, with Discovery Vitality even offering a free Apple Watch if one meets certain goals.

"Thirdly, Fitbit has been marketed remarkably well in this country, and has become almost a generic term for fitness bands.

"Finally, a wide range of bands at a wide range of prices is available in the country, and the imminent arrival of the Xiaomi Mi Band, at a fraction of the cost of equivalent devices, could further stimulate the market."

IDC says smart wearables are still finding their feet in the market, as many consumers continue to view the devices as too expensive for the features and functions they offer.

Basic wearables dominate the overall MEA wearables market, with 71% unit share versus 29% for smart wearables.

"The growth of the wearables market provides a rare ray of light amid an overall downturn for personal computing in the region," says Nakul Dogra, a senior research analyst for personal computing, systems and infrastructure solutions at IDC.

However, Goldstuck says the decline in PC sales is part of a broader shift towards smart devices.

"In the past, someone getting a computer would work towards getting a PC or laptop, often having to delay the purchase because of cost. Now, everyone who is in the market for such a device is already getting a smartphone, which for many people becomes their first computing device.

"Wearables are, at present, a companion to smartphones, and have little relationship to PCs or their rise or fall," says Goldstuck.

IDC forecasts the MEA wearables market will grow at a compound annual growth rate of 20.1% for the 2016-2020 period, driven mainly by the adoption of smart watches and fitness trackers.

"The growth will be further augmented by the launch of new wearable products in the clothing, eyewear, earwear categories, among others," says Fouad Rafiq Charakla, a senior research manager for personal computing, systems and infrastructure solutions at IDC.

"IDC expects vendors to step up their new product launches in the MEA market as share gain becomes the name of the game. We also anticipate new operating systems and versatile pools of applications to emerge to support all these new devices."

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