The Smartwatch Group predicted 250% annual growth in sales of the smartwatch industry for several years. The industry sales were low till middle of 2014 (about 700,000 smartwatches shipped worldwide). But the sales were expected to surpass traditional watch sales in 2018 and become a six-billion-dollar market by 2020.

Sketch a diagram for (a) smartwatch market and (b) traditional watch market to reflect the above scenario i.e. reflect the growth from 2014 to 2020. State your assumptions. Make demand and supply curve for each market and then show the demand shift according to the information given.

Answer rating: 100% (QA)

Smartwatch and Traditional Watch Market Diagrams Assumptions The global smartwatch market is represented by one aggregate market The traditional watch ... View the full answer