Normally what happens when there is "new thing" in the tech market enough people buy a product to stimulate the supply chain. This encourages suppliers to mass produce and push costs lower. This maintains the momentum as a waves of others buy because the price drops on compontents.

But word on the street is that while vendors have launched wearable products, orders for wearable devices may not be sufficient to drive growth for related component suppliers.

The vendors have many different devices and each of them needs only a small amount of components support.

Component makers look at what they need to supply such devices and realise that they are not going to make their money back anytime soon and are giving it a miss.

The same applies to the upstream suppliers need to specifically establish a team as big as a smartphone team to help clients develop new wearable devices.
Already there is a lot of competition in the wearable devices market particularly as 90 per cent of wearable devices shipments are two types of products - smartwatches and bracelets.

Punters have shown that they are not interested in these and demand is really weak.

The Apple Watch was touted to be the leader of the wearable industry, mostly by Apple and its chums, only achieved sales less than three million units prior to mid-June, much weaker than originally expected.

The problem appears to be that while everyone is saying "wearables" no one has really come up with a good product yet, or one that attracts anyone's attention. If Apple could not market up a storm, then chances are there will never be one.

This could put Intel in a bind. Much of its efforts have been going to providing products to support a boost in mobile wearables. If this never happens then it could be in trouble.