Editor’s Note: Fareena Sultan is a professor of marketing at Northeastern’s D’Amore-McKim School of Business. She teaches courses in marketing management, electronic/digital marketing, mobile marketing and marketing analysis for technology-based products and services.
One Futuristic Scenario (In the Not-So-Distant Future)
Ms. Future lives in a smart home as the “Internet of Things” has become a reality. She wakes up and goes for a run with her smart headphones that are her connectivity to her smart home. The smart headphones remind her of the route she took yesterday and asks if she wants a new route. When she says yes, the smart headphones select one of her favorite morning tunes and guide her accordingly on a new path for her run.
A little while later, the headphones ask Ms. Future if she wants to start the coffee pot. She says yes and adds that she wants the hot water heater turned on for her shower that she plans to take when she returns from her run. The smart headphones comply.
Ms. Future then informs the headset that she has an important meeting. The headset selects another song based on its new estimate of Ms. Future’s mood. Ms. Future is then presented with her favorite relaxing tune, completes her run guided by her smart headphones and comes home to a fresh pot of coffee and a hot shower to get ready for an all-important meeting.
All this morning activity got done while Ms. Future was running, without touching her mobile phone — and all thanks to her smart headphones.
The Potential for Wearable Tech
If this year’s Consumer Electronics Show was correct, wearable technologies are the new rage in consumer electronics. Smart watches, Google’s Glass, health and fitness tracking devices and applications — and smart headphones — are getting increasing attention in the media. According to industry experts, the wearable technology market is set to expand rapidly in the next several years with worldwide spending expected to hit $1.4 billion this year and $19 billion by 2018.
Consumers have become more aware of wearable technology through the launch of Google Glass and expected smart watches from Samsung and Apple. At the same time, dedicated wearables, such as fitness tracking bands, may be a fad that will pass away as consumers find it difficult to wear them for extended periods of time. This may lead to growing interest in alternative devices, such as smart headphones.
What Can Wearable Tech, Such as Smart Headphones, Do?
Smart headphones can not only measure such data as the wearer’s temperature, heart rate, pulse and perspiration, they also have the ability to sense a wearer’s position and can tell if his or her head is moving or not. This can allow interactivity between the wearer and the device as now instructions, information and cues can be sent to the wearer via audio instructions.
Others smart headphones can figure out your location and the direction you are facing using built-in sensors. The sensors relay information to a smartphone or tablet and allow the headset to know where and what you are facing at any time to give the wearer real-time audio feedback on his or her actions or location without having a screen attached to a user’s face. Smart headphones and ear buds also boast possible use cases in audio gaming, and can act as an assistive device for sight-impaired consumers.
Apple’s recent purchase of Beats by Dre for $3 billion has to be more than just about the purchase of “cool” headphones.
So, Why Did Apple Buy Beats?
Apple’s recent purchase of Beats by Dre for $3 billion has to be more than just about the purchase of “cool” headphones. After all, many in the industry think these are not the best headphones from an acoustic point of view.
So, why did Apple buy Beats?
One reason could be that teens and millennials love their Beats headphones. This is the very demographic that has spurred growth for many Apple products. Besides the obvious connection between Apple’s music and Beats headphones, the more interesting connection is what this does for Apple’s recent interest in wearable technology, particularly one that is capable of tracking health and fitness indicators about the wearer.
Apple may want to put sensors in headphones to make them smart and able to capture a lot of information about the wearer, making Apple emerge as a leader in wearable technology. Rather than looking “geek-ish” when wearing a device such as Google Glass, with smart Beats headphones, consumers can not only listen to their favorite music, they can appear “cool” while their basic health data is being monitored ubiquitously. They can also make a fashion statement about the consumer.
All of this provides value to the consumer.
Smart Beats headphones can also provide Apple the ability to capture user data, not only in terms of music preferences of consumers, but also health and fitness data in an unobtrusive manner.
That is the value to Apple.
The Big “Ah Ha!”: The Consumer’s View
The wearable technology industry is evolving. Yet, wearables have not been adopted on a large scale, because they are not helping consumers solve problems in the context of their lifestyles. Smart headphones are one such device that can alleviate this situation as they integrate music listening with such activities as health monitoring in an effortless manner.
Since consumers vary in their dedication to fitness and in their preferences and activities, they need products that not only track data ubiquitously but also give personalized guidance based on that data, including lifestyle information and the context in which their activities are undertaken. Wearable technology, such as smart headphones, can do just that as they gather individual level data.
Besides individualized solutions for health monitoring and assistance in everyday activities from wearable technology, consumers also want to do all of this in a fun and engaging way, while appearing “cool” and not “geeky.” Branded smart headphones, such as Beats by Dre with Apple-installed sensors, could address these multiple needs of consumers.
Image via Beats by Dre Facebook
