Smart watches/bracelets have become a rising star in the wearable device market

Although sales declined in the first quarter due to the epidemic, the wearable device market quickly recovered in the second quarter. Recently, a report released by IDC showed that the shipment volume of China's wearable device market in the second quarter of 2020 was 26.58 million units, a year-on-year increase of 4.1%. In addition to the hot-selling earphone products, products such as smart watches/bracelets have also become rising stars in this field.

Industry insiders pointed out: "The greatly increased opportunities for online office and learning under the epidemic is one of the main factors driving the demand for headphone products this year; and in terms of smart watches, it is mainly due to the more mature channel operations of brands. This is more for adult smart watches. We see that the market demand for children's watches this year should still decline significantly due to the impact of the epidemic."

Demand enters a stage of rapid growth

A manufacturer engaged in touch module told Jiwei.com: "We mainly made mobile phones and laptops before, and only started to get involved in smart watches and bracelets this year, mainly because we saw the demand from end customers in the first half of this year. And we believe that the demand for wearable devices will continue to grow in the next few years, which will be a good direction."

In the past two years, the sales of smart watches/bracelets have grown rapidly, which is inseparable from the implementation of application scenarios and the further improvement of functions. The most popular application is in the medical field, which can be seen from the products launched by many first-tier terminal brands. According to Jiwei.com, Huawei's department engaged in the development of wearable devices has also been continuously seeking cooperation with manufacturers in the medical industry.

Some analysts pointed out: "Professional medical institutions can improve the data accuracy and professionalism of wrist devices, and cooperation with emerging technology industries will provide more experimental cases for the digital transformation of the traditional medical industry. Watches have more advantages in the richness of data monitoring and the access experience of service functions, so the cooperation between wrist devices and professional medical institutions has gradually become a market development trend."

In fact, the explosion of demand is also reflected on the supply chain side.

Take Lepu Medical as an example. According to the performance of the first three quarters disclosed by the company, Lepu Medical expects to achieve a net profit of 50.1798 million yuan to 57.7067 million yuan during the reporting period, an increase of 100.00%-130.00% compared with 25.0899 million yuan in the same period last year; not only that, the company's semi-annual report performance was also equally impressive.

乐心医疗表示：“今年公司业绩的增长，得益于紧抓智能可穿戴和医疗健康行业快速发展的机会，充分发挥医疗级消费电子领域的优势，继续聚焦战略大客户，在智能手环、手表等项目上与新的战略大客户合作，大客户战略成效显著。”

It is worth mentioning that an important factor supporting its substantial growth in performance is the cooperation with major customers on smart bracelet/watch projects. This is also a necessary condition for most suppliers to achieve impressive performance in related businesses.

Big brand supply chains are expected to benefit

The head of a company that also manufactures smartwatch parts told Jiwei.com: "Although the industry as a whole is now showing a positive development trend, the real growth point will always fall on a few big brands. In our opinion, there will not be too many brands that can produce products such as watches/bracelets in large quantities. This also means that supply chain manufacturers can only truly enjoy the industry dividends if they grasp the resources of big customers."

"For example, the terminal brand supply chain represented by Huawei, Apple, and Xiaomi. These three brands have seen significant growth in smart watches and bracelet businesses in recent years, and they should all be in a stage of rapid growth in the next few years, so the performance of their supply chain manufacturers will also rise accordingly." The above-mentioned company leader continued.

According to Jiwei.com, many listed companies including Anjie Technology, Fenda Technology, Xinwanda, Changxin Technology, Lens Technology, and Zowee Technology are currently making plans in the field of wrist devices such as smart watches and bracelets.

Changxin Technology has previously stated that the company has sufficient orders for wearable device-related products and is in a situation of booming production and sales. It is reported that the company's wearable device business customers include Apple, Samsung, Huawei, Fitbit, Xiaomi and many other first-tier brands.

Lens Technology has also pointed out that the company has established a deep, long-term and stable strategic partnership with well-known brand customers in the field of wearable devices, and has supplied large customers in North America and China in bulk, with its overall market share firmly in the leading position in the industry. Under the premise that the smart wearable devices of major customers continue to achieve good results in 2020, the business in the field of smart wearables is expected to become one of the company's most important development drivers this year.