Connected Devices and Wearables Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location and nature of the firm are important factors in analyzing rate benchmarking in the connected devices and wearables category. Smart devices are generally costlier in the US compared to China. For example, considering Samsung’s smart watch prices in the US, Japan, South Korea, Taiwan, and China, the cost of a smart watch in South Korea is about USD 400, the lowest among the countries listed. China comes in second with cost of a smart watch around USD 470. This is due to factors such as low labor costs, low materials costs, and high market competition. Taiwan, along with Japan has the second highest cost, with USD 480, due to high labor and material costs. The United States has the highest cost of a smart watch, with USD 500, attributed to factors such as labor costs, materials costs, and low market competition.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, product managers at Alphabet Inc., Sony Corp., and Samsung Electronics Co. receive a 30% - 60% higher average salary compared to the salary received by product managers working in companies such as Xiaomi Corp., and Huawei Technologies Group Co. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the connected devices and wearables category over the last two years:

In September 2022, Fitbit upgraded its smartwatch range which have latest aesthetics and functionality.

In September 2022, Apple has launched latest version of Apple Watch SE and Apple Watch Series 8. These two products help users in knowing their health condition in real time which is synced to their smartphones and they access that data at any time.

In June 2022, to enter the smart wearable industry, Mensa Brands, an e-commerce company, acquired the wearables manufacturer, Pebble. Pebble offers an offline distribution network for music, fitness trackers, and charging solutions. The company intends to expand Pebble's internet presence and capitalize on the growing consumer popularity of wearables.

In April 2022, Apple introduced the HidrateSpark smart water bottle. It can monitor the user’s daily intake of water while syncing it with their Apple Health

In August 2021, The RS60 Ring Scanner launched by Handheld Group is a convenient independently scanning option for use in distribution facilities, retail stores, as well as other environments requiring highly mobile scanning.

In June 2021, LifeQ, a provider of biometrics and health data derived from wearables, partnered with CONNEQT, Inc., a manufacturer of consumer health devices like wearables, consumer health apps, and home vital signs monitors. This was done to strengthen the surveillance, screening, and remote patient monitoring solutions of LifeQ.