Tuesday, 9 September 2014

Signal, noise and Apple Watch

I'm always interesting in people making predictions, particularly after reading Nate Silver's The Signal and The Noise.

The nicest thing we can say about them is that they're always wrong. Still, we can learn a lot from their mistakes.

Currently I'm pondering the 'news' that Analysys Mason reckons 1 million smart watches will be sold in 2014. That's likely not a terrible prediction. It's a nascent market, with the Pebble still having the largest install base.

However, Analysys Mason reckons 13.6 million smart watches will be sold in 2015.

An oddly precise number, but the uplift is - of course - predicated on the news that the Apple Watch won't be released until "early 2015".

What's interesting about the prediction, however, is that to my mind it assumes that more than 85 percent of smart watches sold in 2015 will be Apple Watches.

(That's assuming growth of 100 percent for the non-Apple devices that no one cares about. Even if they sell 3 million units, Apple takes 78 percent of the market.)

In that sense, then, Analysys Mason isn't predicting the growth of the smart watch market but the growth of the Apple Watch market; a market that currently doesn't exist.

No comments:

Post a Comment