Samsung Electronics and Apple have launched new smartwatches this year with stronger healthcare features to defend their market positions. This comes as Chinese companies such as Huawei and Xiaomi have recently been taking share with mid- to low-priced smartwatch models equipped with healthcare features.
Samsung Electronics released the Galaxy Watch 8 in Jul. with sleep coaching and an antioxidant index measurement feature. Then on 19th, Apple rolled out the Apple Watch 11 with similar features.
In size, weight, and thickness—the core aspects of wearables (devices worn on the body)—the Galaxy Watch 8, which is thinner and lighter, has the edge. Battery life is also 6 hours longer on the Galaxy Watch 8 than on the Apple Watch 11. The Apple Watch 11 is priced at 599,000 won, about 180,000 won more expensive than the Galaxy Watch 8.
Both products stand out with features ranging from blood pressure and electrocardiogram measurements to workout coaching and sleep scores. For blood pressure, the Galaxy Watch 8 measures the values, while the Apple Watch analyzes users' blood pressure patterns using sensors and sends hypertension risk alerts. The feature will also be provided to Apple Watch 9 series and later models with a software update.
Jeff Fieldhack, general manager at Counterpoint Research, said, "The new wearable (Apple Watch 11) shows Apple is making health a core theme at a 'medical-grade' level by integrating artificial intelligence (AI) and machine learning into the device."
◇ Samsung Electronics' smartwatch footing wavers… burden from Apple's new features and low-priced push from China
According to market research firm IDC, in the second quarter this year, global smartwatch market share (by shipments) put Apple at 15% in third place and Samsung Electronics at 6.5% in fourth. Samsung Electronics shipped 3.2 million units in the second quarter, down from 3.3 million a year earlier. Its market share fell by 1 percentage point (P), from 7.5% to 6.5%. Huawei and Xiaomi are running first and second in the smartwatch market on the back of price competitiveness and domestic demand.
Huawei's new Watch Fit Pro 4 is in the 300,000 won range, and Xiaomi's Watch S4 is in the 170,000 won range. Apple's bet on stronger healthcare features, amid Chinese makers' price offensive, is a burden for Samsung Electronics. Gene Munster, a strategist at Deepwater Asset Management, said, "A meaningful new feature—blood pressure monitoring—has been added to the Watch (Apple Watch 11)," adding, "We have waited five years for this feature." He also said, "Apple has introduced a new approach to measuring blood pressure by using the light sensor employed for heart rate measurement."
An electronics industry official said, "Apple has built its own ecosystem and has many loyal customers," adding, "Following the price offensive by Chinese companies, the strengthening of Apple Watch's healthcare features will likely make it difficult for Samsung Electronics to defend the market."
◇ Apple and Samsung stay busy building healthcare ecosystems
Samsung Electronics and Apple are expected to compete fiercely in the healthcare market with smartwatches at the forefront.
Samsung Electronics is preparing a business that consolidates biometric data collected from the Galaxy Watch with home appliances, a smart home platform, and medical institutions. Samsung Electronics also acquired U.S. healthcare company Xealth. Apple, too, is strengthening healthcare features while pushing to build its own data ecosystem. Bloomberg reported in Mar. that Apple is preparing a subscription health service to link with next year's Apple Watch products.