.png)
Renato Meireles, market analyst in Mobile Phones & Devices at IDC Brasil
Category begins to gain projection, with manufacturers investing in more advanced releases and technologies
Fit bands, smartwatches, headphones and even smart glasses: wearable devices, or wearables, are the new frontier of mobile devices and the fastest growing category today, even if it is still limited by high prices to a niche market. IDC Brasil, a leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries has just released a study dedicated to this category. The IDC Tracker Brazil Wearables reveals that in the first quarter of this year, sales of fit bands and smart watches reached the mark of 87,974 units in Brazil, an increase of 51.6% compared to the same period in 2018.
According to Renato Meireles, market analyst in Mobile Phones & Devices at IDC Brasil, the category is gaining greater projection in Brazil, with large manufacturers investing in the launch of products in the national market and consumers more interested in knowing and having a wearable. “In 2018, 241,300 units were sold, which represents a growth of 44.2% compared to 2017. The market is becoming more structured, and devices with smarter functions are gaining share in relation to basic gadgets, such as fit bands", comments Meireles.
Simpler devices, primarily aimed at fitness and health use (step counting, sleep monitoring), are increasingly sharing space with more robust, better-spec products that offer functions such as the ability to download third-party apps, notification and making calls, more improved features like blood glucose and heart rate control, and more accurate GPS.
In 2018, sales of basic devices corresponded to 110.4 thousand units, an increase of 7.2% compared to 2017, while the most intelligent equipment reached 130.9 thousand units, an increase of 103.3%. In the first quarter of 2019, this movement was confirmed, with a growth of 19.5% in the number of basic devices, with 39,360 units sold, and of 93.7% in the superior category, with 48,614 units.
The price factor plays an important role in this market, which is still limited to a premium niche. The average ticket for entry-level devices was R$ 1069 in Q1 2019, and R$ 2156 for the smartest smartwatches. The high cost is typical of new product categories, which use specific components and do not yet have large-scale production. In the case of Brazil, these devices are imported and impacted by the tax burden and high dollar.
“With the consolidation of the market and manufacturers investing in products for both the entry and premium segments, the trend is towards a gradual massification and reduction of the average ticket. While in the first quarter of last year wearable devices from unknown brands accounted for 44% of sales, this year that share has dropped to 4%. Consumers are giving preference to products with more quality, warranty and support”, comments Meireles.
For the whole of 2019, the projection is for a growth of 91% in sales compared to 2018, with an estimated sales volume of 461.7 thousand units, of which 208.5 thousand are basic wearables and 253.2 thousand are smart devices. “New leading brands in the global market entering the country and increasing competition in quality and price should contribute to this result, and bring more benefits to the consumer”, concludes the analyst at IDC Brasil.
According to Renato Meireles, market analyst in Mobile Phones & Devices at IDC Brasil, the category is gaining greater projection in Brazil, with large manufacturers investing in the launch of products in the national market and consumers more interested in knowing and having a wearable. “In 2018, 241,300 units were sold, which represents a growth of 44.2% compared to 2017. The market is becoming more structured, and devices with smarter functions are gaining share in relation to basic gadgets, such as fit bands", comments Meireles.
Simpler devices, primarily aimed at fitness and health use (step counting, sleep monitoring), are increasingly sharing space with more robust, better-spec products that offer functions such as the ability to download third-party apps, notification and making calls, more improved features like blood glucose and heart rate control, and more accurate GPS.
In 2018, sales of basic devices corresponded to 110.4 thousand units, an increase of 7.2% compared to 2017, while the most intelligent equipment reached 130.9 thousand units, an increase of 103.3%. In the first quarter of 2019, this movement was confirmed, with a growth of 19.5% in the number of basic devices, with 39,360 units sold, and of 93.7% in the superior category, with 48,614 units.
The price factor plays an important role in this market, which is still limited to a premium niche. The average ticket for entry-level devices was R$ 1069 in Q1 2019, and R$ 2156 for the smartest smartwatches. The high cost is typical of new product categories, which use specific components and do not yet have large-scale production. In the case of Brazil, these devices are imported and impacted by the tax burden and high dollar.
“With the consolidation of the market and manufacturers investing in products for both the entry and premium segments, the trend is towards a gradual massification and reduction of the average ticket. While in the first quarter of last year wearable devices from unknown brands accounted for 44% of sales, this year that share has dropped to 4%. Consumers are giving preference to products with more quality, warranty and support”, comments Meireles.
For the whole of 2019, the projection is for a growth of 91% in sales compared to 2018, with an estimated sales volume of 461.7 thousand units, of which 208.5 thousand are basic wearables and 253.2 thousand are smart devices. “New leading brands in the global market entering the country and increasing competition in quality and price should contribute to this result, and bring more benefits to the consumer”, concludes the analyst at IDC Brasil.
EN 
PT 
