What is a wearable device? Wearable device is a platform for people's internal and external information exchange

What is a wearable device?

Need to understand the nature of demand

The wearable device is not only a hardware device, but also implements powerful functions through software support, data interaction, and cloud interaction. The wearable device will bring about a great change in our life and perception.

purpose:

1) Extension of human capabilities

2) Better perception and experience

Second, wearable devices are people's internal and external information exchange platform

Extract vital signs information (extract information? To whom?)

Perceive the information of the outside world, the perception of the body (the perception of the eyes, ears, skin, etc.)

Perceive external world information, non-body perception (information processing and transmission)

Control the external world (such as controlling smart home, etc.)

Third, the current bottleneck

1) Bottlenecks in thinking and cognition

What kind of function and content, in what form and product form, is the most demanding point for the user (whether the user needs social, entertainment, health monitoring, industrial application or other, where is the best experience)? For watches, is the relationship with mobile phones independent or subordinate? What functions do you add or add or subtract?

2) Technical bottlenecks

Problems such as power consumption, accuracy, life time, area, etc.

3) The bottleneck of the industry chain

The long industrial chain requires head companies to pull up the entire industrial chain

IV. Design Considerations and Major Challenges

Size (very important, most wearables are light, and they are getting smaller and smaller)

• Smaller package

• Lighter materials

• Adopt advanced packaging technology to increase integration

• Hope that the fewer external components, the better

Ultra low power consumption

• Power consumption is critical to the user experience, the lower the better

• Limited battery size due to system size

• Low quiescent current chip facilitates low power consumption and extended standby time

• Wearable devices usually require low-power MCUs

• Wearable devices require low power connection technology

Ergonomic design

• Easy to use

• Prevent misoperation design

• Highly reliable, highly sensitive sensor design

High reliability

• Adapt to various environments

• Good mechanical design to prevent equipment damage

• Sometimes the equipment needs to be waterproof

Sensor Technology

• Multi-sensor fusion

• Choose sensor materials with good biocompatibility

• High sensitivity at low power

Connection technology

• Need low-power Bluetooth, WIFI connection to access other smart devices

• Data synchronization and application auto-upgrade

Features

• Realize the most needed functions at the lowest cost

• The overall function of cloud management

V. Overall industry structure

Bracelet products have a single function, with most of the millet bracelet shipments, but sales growth has declined. From millet bracelet 1 to the upcoming launch of millet bracelet 3, it has been adding functionality.

In terms of smart watches, shipments of giants such as Apple, Samsung, and Garmin have shown an overall growth. The Chinese market has led the world with a growth rate of more than 30%. There are not a few who have annual shipments in the tens of millions.

AR/VR, Microsoft Hololens, HTC vive, Facebook VR, Google Glasses/VR Daydream, etc. are working hard to improve the ecosystem.

Other categories, including children's watches, elderly watches, medical-grade wearables, and professional sports wearables, are relatively subdivided.

Sixth, the project's investment principles - the pursuit of the sub-sectors, the most investment value point

The grasp of market space and future growth

Markets with large space and giant control, investing in upstream companies (see mobile phones)

Different areas have different dimensions of investment logic (product maturity, market space, future growth, industrial chain, and competitive landscape)

Different types of entrepreneurship may have different energy density requirements for the team

Through the understanding of applications and requirements, the possibility of reversing the pattern of product and service, market, and industry competition

Investment in the future of the industry's companies

VII. Investment Opportunities

1) Sports Bracelet Watch

Downstream brand manufacturers have the greatest right to speak and have a market space of 10 million.

Refer to mobile phone investment logic.

Priority invests upstream sensor manufacturers, especially smart sensors, with algorithms (including deep learning), local or cloud processing (self-compensation and self-diagnostic functions, information storage and memory functions, self-learning and adaptive functions): such as optoelectronics, pressure , temperature sensors, etc.

Wearable area communication/interactive technology (lower power consumption, smaller area): 802.11ab, eSIM technology, NB-IoT, millimeter wave, voice, etc.

Do not cast: terminal products; master chip, because the industry chain is too long, as the platform-level master chip, the cost of creating and maintaining the ecology is too high;

Miniaturization technologies, including SIP-level encapsulation, depend on the complexity of downstream integration. Too complex integration is more suitable for downstream brand manufacturers.

Miniaturization (core elements: fast, cheap, satisfying requirements)

• The boundaries between PCB, package test and wafer fabrication will be blurred

• Substrate-Like PCB (SLP), mSAP

• Package SIP, FOWLP, MCeP

• Miniaturization of RF, connectors, etc. (FPC, etc.)

2)VR

The focus of VR is still the immersive experience. The current large companies are actively catalyzing the ecology, including offline education, education, social networking, gaming and entertainment. However, the biggest problem at present is the lack of the most effective application, so that consumers really recognize.

Investment direction: The direction of gaming and entertainment, or the best value of VR, software for this purpose (If VR can get up, this one is indispensable). (Now the Unity, unreal, etc. occupy the mainstream in the engine, but in fact more can be done, including the engine and the above middleware, a variety of interactive technologies, etc., closer to the actual application, of course, may begin in the form of the project)

3)AR

The characteristics of AR are the enhancement of information in the real world, so the areas that are destined to penetrate are diversified.

The sense of immersion is not as good as VR. Apart from mobile phone AR, the others are relatively scattered and the attention of giants is limited. So bring opportunities for startups.

But the bottleneck is also here: 1) Combine with the real world, make the processing of information more complicated; 2) Decentralization, unable to bring about the emergence of strong products. 3) AR is often only a part of the entire real system and cannot form a closed loop. As for industrial AR applications, although the AR technology is simplified, the entire system AR is only a small part.

For specific scenarios of AR, companies that prefer to provide solutions for the entire system can establish closed loops (refer to PTC's acquisition of Vuforia)

However, there are actually opportunities in the entire upstream and downstream industry chain of AR, depending on how much the value of this point can be enlarged to the current and future industrial chain.

4) Segmentation

Give priority to projects that are closely related to data.

Can be cast a variety of combinations of products into a system solution project. However, the requirements of the team are higher, and the transaction structure of the entire business model is more complex. Compared with the upstream startup companies, they need higher energy density and higher dimensions, sales ability, management ability, strategic capability, and endogenous development. The new core competitiveness of technology, wearable products is only a small part, such as community pension and other industries (refer to the development history of Haikang, Dahua, etc.)

For projects that have a high penetration rate in the industrial chain, the functions of products and services are not necessarily more, but they require specialization. Big and all are big companies that need the catalysis of the entire ecosystem.

For projects of the order of several million, you can invest in end-product-type projects, or even professional platform-based SoC chips and system-level solutions.

Professional sports and medical care are important directions for wearable devices. Focus on multi-sensor fusion, sensors to multi-parameter, intelligent, miniaturized, low power consumption.

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