Smartwatches need to distinguish themselves with software as well as hardware

Out of the ashes of its predecessor the phoenix is born. People forget that the Hype Cycle exists because rational people with good vision see opportunity.

There has been no shortage of thoughtful articles exploring a bubble in technology. In general, they share a fear of a return to dot-com failures like Webvan and a coming tide ofunicorpses washing up on the shore. I would argue that the world has already been transformed, and there is no bubble in the purest sense.

Often the vision is “spot on,” but expectations of velocity of transformation and adoption are inflated, leading to over-investment that subsequently must be rationalized.

Despite going for growth and market share over profit, many of these companies have created real value, and, instead of massive flameouts that leave everyone burned, I think we are going to see a wave of beneficial consolidation and rationalization in industries that appropriately have seen exceptional venture capital funding: food, transportation andentertainment.

This does not mean that companies will disappear or die, but rather that many will merge or be consolidated, which will enable leaders in these industries to achieve sustainable scale and grow to do even bigger and better things.

Let’s take a deeper look at what this could look like.