How much will you pay for a smartwatch? $100? $200? $300? Maybe more? A new survey now shows that most consumers aren’t willing to pay quite as much as companies want them to for a new smartwatch. For now, though, it seems they are just going to agree to disagree.
The study, conducted by First Insight, interviewed 1500 people in the US this past July. Of those people interviewed, 49% said they are “waiting for the prices of existing smartwatches to come down.” On top of that, 74% of women and 69% of men said they want to spend either less than $100 or $100 – $200 on smartwatches.
Think about that for a minute. That is half of the market, after all. Now consider the Apple Watch Series 2 that was just released. It retails for $369 and the Series 1 currently sits at $269. That means that even the old watch is still out of the price range of many consumers.
That being said, the Apple Watch still scores the highest among consumers and currently leads the market today. The question becomes, then, would the market be bigger if premium smartwatches came down in price?
The study didn’t just examine the prices people were willing to pay. It also asked what people found most important in a smartwatch. Here is how it broke down:
- 37% Features and Functionality
- 25% Price
- 18% Quality
- 12% Style
- 8% Brand
The survey also found that consumers wants and needs in a smartwatch differed greatly. “Consumers want a smartwatch that fts their lifestyle, and it shouldn’t come as a surprise to retailers that not all consumers have similar lifestyles.”
The study also recognizes the decline in smartwatch sales. “As the smartwatch industry continues to face a steep decline, it’s time for watch retailers to pay more attention to their varying target audiences, understanding that their entire customer base won’t be interested in the same features and functionalities.”
So what can we take away from all this? Essentially, consumers want cheaper watches that give them the features they need. However, the features needed vary greatly as consumers are very different from one another, suggesting a one size fits all approach just won’t work with smartwatches. If companies want the market to grow, they are going to have to change how they design and market these products. Smartwatches need to be cheaper, functional, and flexibility to fit different user’s needs.
The smartwatch market is still relatively young, and will no doubt go through many changes and companies work to bring products to the market that are affordability and bring the features and flexibility their target markets require. While the market may have slowed, it is far from being over and companies have a chance to turn around their fortunes in the wearables market, assuming they listen to their target audience.
Do you think smartwatches are over-priced or do you think that the prices you can find today on smartwatches are pretty affordable in the grand scheme of things? Are you waiting for something to change before you order your very own smartwatch? Let me know your thoughts about this in the comments below.