Companies are pushing further into fast-growing and other notable categories like wireless headphones, action cameras, activity trackers and broader health & wellness-related wearables (including ones branded by Under Armour), and virtual reality; we found no shortage of related products at CES 2016. We came away encouraged by further consolidation in traditional wired headphones, though competition appears to be increasing in wireless, action cams, and activity trackers. Today’s report includes individual takeaways related to Plantronics, ZAGG, Skullcandy, and Mad Catz.
Competition In Wireless More Pronounced Than In Wired Headphones. We noted substantially fewer wired headphone offerings than in prior years and declining levels of innovation and emphasis from the likes of certain industry participants, including Monster, SMS Audio, and House of Marley. Offsetting this trend somewhat, the wireless category has become somewhat more competitive, and we noted new offerings from the likes of Sony, JBL, Skullcandy (SKUL – Buy), and ZAGG (ZAGG – Neutral) —though generally at fairly robust price points. Wireless early-mover LG demonstrated previously-launched product like its Tone Active and Tone Infinim headphones, while Jaybird launched a slightly upgraded version of its previously-successful e2 product with smaller ear inserts and an accompanying “my sound” app. Beyond that, several companies launched headphones focused on immersive technology and/or 3D directional sound—including GN Netcom’s Jabra, Skullcandy, and Mad Catz (MCZ, Buy).
Notable New Wireless Offerings From Skullcandy. Skullcandy announced several new products ranging from wireless headphones to new portable speakers and immersive audio. Ink’d Wireless is a Bluetooth upgrade to one of the world’s top-selling headphones. It is expected to launch this summer and retail for $49.99 (or a ~$34 premium to wired), while Grind Wireless should launch in April at $89.99 and Method Wireless should launch in fall at $59.99—all of which seem like attractive price points versus the competition. Meanwhile, new Barricade speakers are louder, more rugged, and priced more aggressively than prior speaker offerings. Beyond that, Skullcandy announced a wireless version of its highly-successful Crusher product that should launch at retail in Holiday 2016 for $149.99, or a 50% premium to its wired version. Crusher VRA features directional bass at 35hz and will be more of a halo product at its targeted price point of $299.99. Both products feature upgraded aesthetics and audio quality.
A Range Of Innovative Products From Plantronics. Plantronics (PLT – Buy) showcased several products and technologies, ranging from UC headsets, wireless headphones, and PC gaming headsets to IoT- and secure payments-related voice-activated concept devices. It also demoed a Google Smart Lock-integrated concept device that utilizes a variety of factors to determine if action should be taken to lock a phone or laptop when separated from the rightful owner. Notable products included the industry’s first Bluetooth stereo headset with active noise-cancellation technology designed for open workspaces as well as a PC gaming headset engineered for e-sports players. We also discussed new Plantronics Manager Pro capabilities that are the first in the industry to simplify headset management at an enterprise level through organization-wide deployment of DECT security firmware enhancements to wireless headsets. We believe this may have the potential to drive material revenue in coming quarters.
