Smart wearables could affect smartphones

When mobilephones first came into existence in the 1990s, the tech accessories segment was still embryonic. Mobiles came with headphones and chargers, and consumers had only to pay extra for a cover to protect their phones against scratches.

However, when smartphones started to push conventional cellular phones out of the way a decade later, growth opportunities loomed large for the accessories and which seized the moment and consolidated its significant share of retailers’ revenues.

Now, it is an established fact that tech accessories have so sound a margin that retailers can ignore only at risk to their bottom-line. There is enough evidence the tech accessories segment is thriving more as an aftermarket of smartphones.

In 2012, an ABI research showed that smartphones had driven $20 billion (Dh73.4 billion) in aftermarket accessory revenues, accounting for more than half of the $36 billion that all aftermarket handset accessories produced. By 2017, smartphone accessories are projected to grow to $38 billion in revenues, driven mainly by a constantly higher mobile penetration.

That’s good news, but with rapid evolution of technology and short innovation cycles, it is only fair to inquire about the future of tech accessories linked to smartphones and wonder for how long this segment can stay dependent on it as a profits’ generator for retailers.

As smartphones have become a key component of modern consumers’ lifestyle, and are considered an investment, the importance of accessories has increased substantially. This has in turn led to a sizeable growth of retailers’ sales with consumers becoming keener to protect their devices against damage and enhance their devices’ experience in terms of both the look and features.

Identifying the big potential of accessories, even top fashion brands have made unusual forays into the accessories arena to target high-end smartphone users more interested in the fashionable look of their devices. Such accessories include Giorgio Armani-branded leather smartphone cases to Michael Kors’ Mara Leopard hair calf phone case and logo lipstick phone charger and Emporio Armani’s $425 iPhone holder.

The current mobile lifestyle, however, has driven smartphone accessories a little away from cosmetic and protective functions to perform other tasks and enhance their functionality and value. Cases, for example, are no longer only protecting and ornamenting phones, but they can serve as chargers enabling users to charge their phones on the go. Conscious of consumers’ expectations, vendors reacted with a series of practical accessories, including Bluetooth headsets, and headphones, cradles, memory cards, scratch protectors, wireless chargers and speakers, and many other wired and wireless accessories. The latter have appealed to the round-the-lock connected consumers looking for more convenience and enhanced experience with their cherished devices.

When smartphones accessories were making their case for consumers and retailers alike, other industries — especially health care and sports — have also developed tech accessories to carry functions that smartphones didn’t deliver.

Wearable devices to measure blood pressure, heartbeat and running distances as well as other functions have been around for quite some time, although they haven’t been used by consumers as widely as smartphone accessories.

Tech accessories will witness their major turn with the new augmented reality innovations such as Google Glass and smartwatches. In addition to offering consumers almost the same functions as smartphones, these novel accessories can carry other tasks that are traditionally provided by other tech devices such as the wearables used by gym goers.

Perhaps the appeal of the new devices to consumers is still to be tested just like any new tech product at an early stage. But considering their enhanced features it might not take long before they are embraced.

Both Google Glass and smart watches still need to be connected to smartphones for some functions, but they might soon be enabled to perform these functions independently.

When this happens, consumers might no longer need their smartphones nor tech accessories linked to them. Augmented reality might become the norm, and in that case tech retail will lose the margin secured until now by smartphones and their accessories.

From experience, consumers can adapt easily to new tech products when they serve better their lifestyle requirements and convenience. So, will the rise of smart wearables such as smartwatches and other augmented reality tech products lead to the decline of smartphones and their accessories industry?

This might be a premature thesis, but the recent history of technology has shown us how antithesis has not always prevented change. Undoubtedly, this is a big question and many factors should be considered in providing an answer, including the readiness of vendors to make the shift.

But when the consumer decides, vendors will follow, willingly or unwillingly.

The writer is the CEO of Emax.