Will wearable technology take off? Only time will tell

History is littered with examples of technology that has failed due to a lack of adoption. Take the infamous Betamax video format for example. Launched by Sony in 1975, it was revolutionary in enabling users to record and play back television programmes.

A year later, JVC launched its rival VHS platform, which was later adopted by several other manufacturers. This competition meant cheaper hardware for consumers and as the technology became more common, it was the preferred format for publishers, meaning a greater choice of pre-recorded content. Bye-Bye Betamax!

A more recent example is Google Glass, a much-hyped device which failed due to a prohibitively expensive price tag and a lack of useful applications.

Smartwatches

The catalyst for growth in wearable technology could be the eagerly-anticipated Apple Watch, which is expected to take the world by storm when it launches later this month.

As many as 100,000 apps are expected to be developed for the device, with prices starting from £299 when it hits UK stores later this year. This relatively high price tag, and the fact that most of its functionality relies on the user having an iPhone may hamper sales.

Apple will also have strong competition from cheaper, Android-compatible smartwatches such as the Samsung Gear S.

Consumer demand

A recent report from Futuresource found that the market for smartwatches, wireless watches, GPS watches and activity trackers grew by 140 per cent in 2014, with a further 50 per cent rise expected this year. 1 in 10 of those surveyed revealed they would be likely to purchase a smartwatch in the next year.

A further report from Barclaycard shows that almost three-fifths (59 per cent) of Britons are keen to spend money on non-essential items such as electronics. Their data also shows an increase of 6.6 per cent on electronics spending year-on-year for Q1 of 2015.

Barclaycard are looking to capitalise on this demand and have successfully trialled an extension of their contactless payment technology in the form of a new wearable payment system, known as bPay. This enables users wearing a wristband to pay for goods or services up to a value of £20, simply by touching the band on contactless payment points.

This is an extension of the company's widely-adopted contactless card service and will be accepted by organisations such as Transport for London, allowing users to pay for rail and underground fares, as well as thousands of retailers across the country.

Ubiquitous or Superfluous?

Will wearable technology become as ubiquitous as the VHS recorder, or as superfluous as Google Glass? There is no doubt that growing consumer confidence and an appetite for new technology will mean that these devices will sell. Only time, however, will tell if these devices will gain the adoption from service providers and have enough real world applications to be an enduring success.

Sources:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10879529/Barclaycard-launches-contactless-wristband.html

http://www.forbes.com/sites/siimonreynolds/2015/02/05/why-google-glass-failed/2/

http://www.telegraph.co.uk/technology/news/11294502/The-biggest-technology-flops-in-history.html

http://en.wikipedia.org/wiki/Betamax

http://www.macworld.co.uk/news/apple/apple-watch-iwatch-release-date-uk-price-specs-battery-life-apps-shipping-availability-3425479/

http://en.wikipedia.org/wiki/Apple_Watch

http://www.barclaycard.com/news/spend-report-q1-2015-consumer-leisure-spending.html

Web: www.barclaycard.com

Twitter: @Barclaycard