In the video below, Motley Fool portfolio manager David Meier and managing editor Eric Bleeker discuss tech events over the past week.
A January report from researcher Endeavor Partners noted that a third of wearable devices are no longer used just six months after purchase. Eric and David discuss what that could mean for a wearable market being eyed as a potential growth market by companies like Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG).
Eric and David both agree that early usage statistics on wearable devices should be taken with a huge grain of salt, as companies are still experimenting with new product ideas. At such an early stage on the adoption curve, it's natural for a product line like wearable devices to be very rough around the edges.
While wearable device hardware can often be very rudimentary in early stages, Eric also looks at one of the early breakout success stories in wearables: social. Devices like FitBit are far more powerful because they allow leaderboards that encourage friendly competition. Eric notes that Andreessen Horowitz-backed Omada Health has utilized peer groups to provide a very meaningful weight decrease in diabetes patients.
With Apple preparing to release Healthbook in its next major iOS release, and Google creating Android Wear for wearables, Eric and David discuss how early successes and failures across wearables could be applied to later generations that continue to improve the space.
David Meier owns shares of Apple. Eric Bleeker, CFA has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.