Wearables are a can’t-miss growth market. The same kids (and adults) today who take selfies with their smartphones to post on SnapChat and Facebook $FB are going to be doing 10 times more of that, and most of it in real time using wearables.
I don’t understand how anybody would doubt that anything that gets people posting more and easier and consuming more to and from the net is only going to grow exponentially.
The smartphone becomes the hub for these wearables, a centralized place to control the devices and the content that goes through them and on them. Some people will have three to five wearables for every smartphone they have. Others will have 10-20.
More than a billion smartphones will be sold this year, up from less than 100 million seven years ago. I say there will be several billion wearable devices sold over the next few years.
Did you know there’s now a Wearable Workout shirt from Polo. How about wearable chips that you put on your skin that measure your blood and oxygen levels? Need I go on?
With all of that in mind, here are six reasons you should invest in the Wearables Revolution:
- Selfies. Billions of selfies are taken every day. Wearables make taking and posting selfies even easier.
- Security. Wearables will make you more secure as you can record and stream any emergencies.
- Fun. People love to watch other people doing exciting stuff. Wearables enable that like never before.
- Health. You’ll literally be wearing little sensors to measure your blood levels, oxygen levels etc.
- Learning. You’ll learn how others are treated, how they see the world through their eyes, and where they go.
- Family. You’ll be more connected more continuously to your loved ones than ever before. Remember when people didn’t even carry cell phones to call you in emergencies? That’s what the next generation will be saying about wearables — “Remember when people didn’t even have streaming and GPS and health tracking wearables to keep them safe?”
My favorite stocks for the Wearables Revolution include Ambarella $AMBA which makes HD chipsets to record and stream selfie movies). Google $GOOG and Apple $AAPL— their platforms will dominate wearables like they did smartphones and tablets.
Remember that the Apple Watch changes everything for the Wearables Industry. Analysts starting to model Apple Watch numbers with JP Morgan recently saying that the Apple Watch could contribute 10% to Apple’s 2016 full-year earnings.
Finally, you’ve got to watch this video of Steve Wozniak explaining why he’s so excited about the Apple Watch. One of the highlights of my career was giving the speech leading into Steve Wozniak’s keynote at the Apple Investment Conference a few years ago. He was incredibly inspirational, and I’ve quoted from the talk he gave in building Scutify with Kheang Ly many times over the last couple years. Can you imagine what the Apple Watch might look like if he and Steve Jobs were still running it?