KUALA LUMPUR (Jan 26): Information and communications technology (ICT) distributor ECS ICT Bhd is entering the wearable technologies market after securing the rights to distribute several smartwatches from renowned global brands.
ECS ICT said its wholly-owned subsidiary ECS Astar Sdn Bhd will distribute three smartwatches namely Apple Watch, Motorola Moto 360 and ASUS ZenWatch 2.
"The prospects of this segment are certainly exciting, as we will be able to provide our principals market penetration as quickly as Malaysians are receptive to these new devices," ECS ICT chief executive officer Soong Jan Hsung said in a statement today.
"We are optimistic that this wearables segment has significant growth potential and will contribute positively to the group’s performance from this financial year onwards,” he added.
This is on the back of the International Data Corp's (IDC) forecast that the worldwide wearable device market will reach a total of 111 million units in 2016, growing 44% from 80 million units in 2015. Additionally, IDC predicted that by 2019, that number is set to jump to 215 million units, on a compounded annual growth rate of 28%.
Soong point out that since its inception three decades ago, ECS ICT has evolved from distributing personal computers and notebooks to mobility products such as smartphones and tablets and now, smartwatches.
“The go-ahead from our reputable principals is a strong affirmation of our competencies in distribution,” he added.
“Over the years, we have set a track record of growing our various segments, including the notebook and mobility products division. We aim to replicate this success in the wearables category, by adding more products within the segment as well as growing our distribution touchpoints.
"In the near future, we endeavour to introduce more brands to expand our wearables portfolio to provide users the freedom of choice,” said Soong.
ECS ICT has a nationwide channel network of more than 5,000 resellers comprising retailers, system integrators and corporate dealers.
ECS ICT shares closed unchanged at RM1.52 today, bringing a market capitalisation of RM273.6 million.