Wearable success requires a balance between design, energy consumption and utility.

"If you are successful, you need to strike a balance between design, energy consumption and function." "Misfit Wearables, the CEO and founder of Sonny, who speaks fluent English, is talking to hundreds of manufacturers and buyers at the table," he said. This is the scene of the 2014 Hong Kong Spring Electronics Fair (NASDAQ:GSOL), held on April 12-15th.

"Our inaugural keynote address focused on wearable technology, one of the industry's leading trends in the 2014. "Huang Tanwei, president of the Global Resources exhibition, said in an interview with the 21st century economic reporter, Sonny vu and Intel Vice President Jesse Fang, etc. for the wearable market share, so that the Shenzhen manufacturing enterprises see a new opportunity.





according to Huang Tanwei revealed that the current number of Shenzhen enterprises occupy the global Resources Electronic exhibition number of exhibitors close to 60%.





"Wearable concept is very hot, but the current market has not yet been measured." "Shenzhen Electronics Co., Ltd. general manager Mao Shengjun told reporters that the three-year-old tablet computer market is now close to the collapse of profits, and is considered to be" the next big thing "wearable and smart home and so on, the Shenzhen Cottage Circle is currently in the lean situation.





Flat profit collapse





"Now a tablet computer's shipping price can achieve a minimum of 180 yuan, the profit is only 5 yuan." "Mao Shengjun to the 21st century Economic report reporter, said that the tablet computer was once a small and medium-sized manufacturing enterprises in Shenzhen after the mobile phone to find a sweet, but the current market has bland.





five years ago, in Shenzhen, the accumulation of contacts, supply chain and other resources of the Mao Shengjun began entrepreneurship, the Terrid is mainly engaged in vehicle navigation business, the current annual sales in the 100 million or 200 million-yuan range.





Mao Shengjun said that the Shenzhen electronic manufacturing industry's biggest advantage is complete, upstream components, solutions, channels, etc. are not a problem, "as long as there are orders, there is profit."





2012 saw other enterprises to do tablet computer booming, Mao Shengjun also separate part of the team cut in. At that time, because the upstream chip is not fully mature, need to carry out a certain supporting development, the tablet computer market has a certain threshold, at the same time, the market in the Apple ipad led by the demand is very large, "we more than one months to produce more than 10,000 units, each of the profit has sixty or seventy yuan ”





with the full Zhi, rui-core micro-domestic chip mature, tablet computer technology threshold quickly reduced, a large number of manufacturers flocked into the price war as promised.





Shenzhen Blue Magic Digital Technology Co., Ltd. marketing manager Euffachen told reporters that the current Shenzhen tablet computer circle the largest one year can do 5 million-6 million units, mainly to make customized overseas markets, relying on low-cost shipments and rapid turnover, there are some profits.





However, the elimination of small and medium-sized manufacturers has begun, "those size in hundreds of thousands of units and a hundred thousand of of manufacturers already have a lot of survival pressure." Future tablets will certainly form an oligopoly like the PC market. Euffachen said.





Mao Shengjun also told reporters that in the face of a few unprofitable status, its solution to the tablet computer business is to shrink the factory, "only to raise engineers, do not raise workers", with orders to find solutions and production capacity, the so-called engineer's task is not research and development, but mainly on behalf of the factory products for testing, acceptance.





Chip Manufacturers Guild Wars





in Mao Shengjun view, Shenzhen tablet computer industry has benefited from the upstream chip dealer price war, but the chip price war also let downstream terminal enterprises face profit dilemma. At the same time, chip companies themselves in the price war can not be isolated.





Mao Shengjun told reporters that three years ago, a tablet computer chip can sell more than 10 U.S. dollars, and now has slipped to 5 U.S. dollars, some domestic chips even only 3 U.S. dollars, "their cost is not low, or even doubled."





insiders believe that if Apple opened a tablet computer blue sea, and the full ambition to create a Shenzhen tablet computer in the true sense of the first climax. The Zhuhai chip design company launched at the end of 2011 a chip called A10, to make the low-end tablet computer to become an experience to allow users to accept the digital products.





2012, the full ambition launches next generation product A13, and launches the price war, has dropped its price sharply to 5 dollars. Another domestic chip manufacturers Rui Core micro-side challenge, one side in the relatively high-end dual-core, four-core products on the force, and occupy the opportunity.





up to now, in the tablet market (excluding Apple and Samsung) chip market, the full Zhi and Rui-core micro present the situation of hegemony.





Although tablet chip prices and gross profit margins are falling, for chip makers, annual shipments of more than 200 million and still in the fast-growing tablet market is still a piece of cake that is hard to give up.




MediaTek,
in the smartphone market, is an important predator. The tablet, with its communications capabilities, is seen as a market in which MediaTek can play a dominant role. According to a survey of Android chip suppliers in the industry, 2013, the total Zhi, Rui core micro shipments were 46 million and 40 million, MediaTek's shipments reached 21 million.





Mao Shengjun that MediaTek has a mobile phone industry precipitation, and arm Company's cooperation is more in-depth, in the tablet market with growth, but from the current point of view, MediaTek encountered the problem is mainly research and development input lag, and the pace of improper control.





Intel is another person to be eyeing. The chip giant, once stretched in the mobile internet era, hopes to draw a comeback on the tablet.





, marketing manager of Shenzhen Blue Magic Digital Technology Co., Ltd. Euffachen said Intel's chips have an advantage in performance.





at the same time, Intel has not only lowered its posture, but also launched a "CTE program" (China's tablet technology ecosystem) designed to bring the entire ecosystem of Intel's tablet chips to China, adapting to the pace of the domestic market. "In order to gain market share, Intel will provide partners with a range of support in marketing, channels, research and development." Euffachen told reporters.





Mao Shengjun that, in 2014, with MediaTek, Intel's invasion, the entire tablet industry will become more and more fierce competition, more small and medium-sized enterprises will withdraw from the market, but currently wearable market is not mature enough, "some companies will be more sad days."





Huang Tanwei told reporters that the current global resources Hong Kong Electronics Show a total of 4,200 booths, of which only eight or nine can be dressed exhibitors.





"Shenzhen can wear market maturity, may also have to wait for domestic chip maturity and price war, thus into the next cycle." "Mao Shengjun said.