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Hype around the Apple Watch when it was launched in 2014 set expectations racing that wearable technology was the next hot market, attracting established players including Samsung , Huawei and Motorola as well as start-ups such as Pebble. Now, however, analysts are slashing their forecasts for wearables, as some manufacturers bow out of the market altogether. Pebble’s main assets were snapped up by Fitbit in a fire sale while Motorola has said it has no near-term plans to launch another smartwatch, saying wearables “do not have broad enough appeal”. Ahead of the holiday sales season, researchers at IDC found the wearables market grew just 3.1 per cent in the third quarter, with basic, low-cost fitness trackers outpacing more sophisticated smartwatches. James Park, chief executive of Fitbit , which is the market leader by sales, is more optimistic about the wearables industry. “Our point of view is there is room to further penetrate the market,” he says, pointing to Fitbit research that shows while 66 per cent of US adults who own a smartphone are interested in fitness, only 15 to 20 per cent own a wearable tracker. Closing that gap will be a “multiyear story”, Mr Park says. “The next step in the evolution will be more personalised coaching and guidance. As we integrate more closely with the healthcare industry, the device becomes a need-to-have.” try these outInstead of pumping out more and more devices in the hopes that one will catch consumers’ attention, many technology companies are now focusing on improving the software and services behind the hardware. At CES this week, many manufacturers will add virtual assistants from the likes of Microsoft , Amazon and Google to their products, while others will claim they have added “artificial intelligence” to everything from cars to toothbrushes.
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