Microsoft’s Wearable Device: Market Is Getting Too Crowded

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By Douglas A. McIntyre Published
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Microsoft Corp. (NASDAQ: MSFT) has released a new wearable device. It has some features that apparently all such devices need to have, particularly health monitoring. However, the software company is late to the game, even though it released its watch before some competitors. Also, there is reason to think the market for these products is already overcrowded.

Microsoft Health is a cloud-based service that helps you live healthier by providing actionable insights based on data gathered from the fitness devices and apps that you use every day. Activity-tracking devices like the new Microsoft Band, smart watches, and mobile phones plus services like RunKeeper or MyFitnessPal connect easily to Microsoft Health. Using this fitness data and our Intelligence Engine in the cloud, Microsoft Health provides valuable, personal insights so you can reach your fitness goals.

Microsoft released its smartwatch before Apple Inc. (NASDAQ: AAPL), but the Apple version was part of the successful iPhone 6 launch, which means it will have an edge. Yet, the Microsoft product will cost $199, whereas the Apple one will start at $349. Microsoft still has to overcome its reputation as a manufacturer of clumsy hardware, no matter what its spot in the smartphone release schedule it has.

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The smartwatch market will have many other competitors, some of which already have excellent pedigrees. Samsung sells the Galaxy Gear, which does, however, seem to be a shadow of the Microsoft and Apple products:

When you get a notification on your Galaxy Gear that requires a more in-depth look, the moment you pick up your Galaxy phone, Smart Relay automatically opens the app that corresponds with what’s on your wrist.

Presumably, one or more of those apps has health management features.

The field is more crowded than just products from the smartphone leaders. Motorola and Sony Corp. (NYSE: SNE) have their own watches. And Microsoft has to overcome a reputation issue at a time when Apple is about release its own watch — one of its most anticipated products in years.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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