Zhi Tong Cai Jing·2025-07-30 06:00Core Viewpoint - The smart watch industry is expected to open up growth opportunities driven by AI applications and demand for sports scenarios, despite some investor skepticism regarding future growth potential [1] Group 1: AI Integration in Smart Watches - AI applications are gradually being implemented in smart watches, enhancing user interaction through AI voice assistants and improving health and sports monitoring capabilities [2] - The demand for high-end smart watches is anticipated to grow as AI features become more prevalent, with shipments of smart watches equipped with advanced operating systems expected to reach 100 million units by 2027, reflecting a compound annual growth rate of 14% from 2024 to 2027 [2] Group 2: Demand for Sports Watches - The demand for sports watches is strong, with significant differentiation in functionality, particularly for outdoor activities and specialized health monitoring [3] - The average price of sports watches is notably higher, with global average prices around $514 in Q1 2024, compared to approximately $190 for the overall wearable wristband market, indicating a trend towards high-end products [3] - The performance of leading sports watch companies, such as Garmin, demonstrates the ongoing growth in the sports watch market [3]