US company looks to steal the thunder of Chinese companies as demand for personalized devices grows, reports Gao Yuan.

Apple Inc's "next big thing" is coming to your wrist - finally.

Apple Watch, the long-awaited wearable device introduced by the United States-based company, is set to challenge existing players in the Chinese market, much like what its iPhone siblings have done in the smartphone sector.

Though local companies have the early-mover advantage in the wearable devices market, the US tech giant's watch/social tool/personal health tracker is set to dominate the market after it debuts next year, analysts said.

"The market will see a dramatic change in the coming months (because of the Apple Watch launch)," said Daniel Matte, an analyst with industry consultancy Canalys. "Smart wearable bands should not necessarily resemble watches but should instead adhere to their own unique design constraints."

Chinese companies have released a slew of wearable devices over the past few months, trying to ride Apple's coattails.

Exactly a week before the Apple Watch launch, Baidu Inc, the biggest online search provider in China, unveiled its first wearable device - BaiduEye smart glasses. Lenovo Group Ltd, the world's largest personal computer maker, also launched its own smart glasses that can take photos and be used for outdoor navigation.

Xiaomi Corp, a Beijing-based smartphone brand that sells low- and mid-end handsets, also introduced a 79 yuan ($13) bracelet that can track basic movements.

With a sale price of around $350, the Apple Watch is expected to hit the market in early 2015 with more than a dozen accessory designs and will be available in two sizes.

Xu Hao, an analyst at research firm Analysys International, said most of the wearable devices in the market are seen as extensions of smartphones.

"Many vendors, including Apple and Xiaomi, are introducing their wearable devices as a personal health tracker that can work with their own handsets. The idea of 'healthier life' plus customized designs fit young Chinese buyers' expectations," said Xu.

"The demand for wearable devices is surging," he said. The global wearable band market saw a staggering 684 percent year-on-year growth during the first six months of the year, according to data provided by Canalys.

US-based Fitbit and Jawbone are the leaders in the basic band category in terms of worldwide shipments and channel partners. In the smart wearables market, South Korean smartphone giant Samsung Electronics Co leads in quarterly shipments and released its fifth smart band gear in less than a year recently, Canalys said.

Basic bands only record user's daily movements and need to transfer data to computers or smartphones in order to visualize the data. Smart wearables also work as a data processer, meaning real time movement information can be shown to users, usually via a small screen on the device.

After the smart watch release, Apple will dominate the wearable gadget market in 2015, threatening other players' position, according to a report published by Forrester Research Inc.

"The most successful firms will think beyond wearables and focus on understanding consumers' expectation to be served in the micro moment - the instant quick information is needed, and can be obtained with just a glance at the device or wearable on hand," said the report co-authored by J. P. Gownder, a Forrester researcher covering wearable devices.

"Firms that master serving customers in these micro moments will advance on the latest engagement battleground," it said.

In addition, Apple's clear attempt to explore the online payment services segment is making the company's future wearables even more terrifying for its competitors.

Apple showed off its latest mobile payment function, which uses near field communication technology, at the iPhone 6 launch.

Although the Apple Pay is available only in some select US outlets and not yet on the watches, industry insiders believe that the mass adoption of near field communication technology in mobile payment sector is imminent.

Li Ye, an Analysys International researcher, said Apple's aggression in the area may prompt other players to adopt the new mobile device-based payment technology more quickly.

"It will be a difficult battle for China to fully accept the use of NFC in payment services because the adoption of new technology means a strong profit setback for those who are using traditional payment methods," said Li.

More efforts are needed from other players in the industry to support the usage of NFC in mobile products, including smartphones and wearables, he said.

Contact the writer at gao-yuan@chinadaily.com.cn

(China Daily USA 09/11/2014 page14)