According to IHS, because the markets for smartphones and tablets are maturing, industry revenue growth will fall prom 39 percent in 2013 to 11 percent this year.
Terry Yu, a senior analyst at the market research company, said: “Although the average display size for tablets is increasing, simpler industrial design and weak device demand are causing average selling prices to fall quickly.”
He continued: “Cover glass makers are now pinning hopes on smart watches, as a way to shore up flagging revenue growth caused by the maturation of the smartphone and tablet segments.”
Smartphones still dominate demand in 2015 and will make up 63 percent of total revenues this year.
IHS believes that demand for the Apple watch will cause demand for cover glass area to grow five fold this year – that’s 33,000 square metres.
“Sapphire glass used in wearable devices commands a premium price, so growth in that area would help shore up industry revenues,” said Yu.
However, as we reported earlier this week, the jury is still out to deliver its verdict whether smart watches are successful or unsuccessful