Qualcomm, Inc. (NASDAQ:QCOM) Suggests Wearables Like Apple (AAPL)’s Apple Watch Are A Compromise
Qualcomm, Inc. (NASDAQ:QCOM) doesn’t believe wearables that depend on smartphones for operation deliver promise. Apple Inc. (NASDAQ:AAPL)’s Apple Watch and a host of other Android-based smartwatches rely on the associated smartphones to support certain functions, but Qualcomm seems to think tying smartwatches to smartphones limits the potential of the wearables.
According to Qualcomm’s Ben Timmons, the director of business development, the time has come for the smartwatch to be independent. A number of smartwatch manufacturers have tried to come up with standalone wearables, but there is still a long way to go. Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF)’s Gear S, which was though thought to be a little complicated, shows a deliberate attempt to make smartwatches free from the smartphone. LG’s widely anticipated but later cancelled LG Watch Urbane LTE also promised a more independent smartwatch. Even Apple has tried to make its Apple Watch more independent by bringing certain functions that were processed on the iPhone to the Watch’s own platform.
Qualcomm, Inc. (NASDAQ:QCOM) believes that the present generation of smartwatches that are tethered to smartphones is a compromise. If smartwatches are set free from the smartphone, Qualcomm sees them living up to their true potential. As a chipmaker, perhaps Qualcomm sees more chips being used in independent smartwatches.
In the current situation, smartwatches are mostly used to deliver notifications, play music from tethered smartphone and take heart readings in the case of Apple Watch. However, independent smartwatches could do more and also become widely accessible to many people who might not have to first acquire a smartphone to enjoy the benefits.
Wearables in payment
Visa Inc (NASDAQ:V) is working alongside a number of smartwatch makers to try and bring payment capabilities to more wearables. Apple’s Apple Watch also supports Apple Pay service. It is believed that wearables such as smartwatches could simplify consumer payment. Perhaps Qualcomm, Inc. (NASDAQ:QCOM) believes that such functionality can be of great value if the smartwatch was decoupled from the smartphone.
Qualcomm, Inc. (NASDAQ:QCOM) is seeking to expand into wearable tech market as it faces intense competition and slowdown in its core smartphone chip business.
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