I’m not going to purchase an Apple Watch, but I’m definitely curious to see how Apple’s (NYSE: AAPL) latest device works.
If the incremental improvement in each successive generation of iPhone is any indication, the Apple Watch is going to be a marvel of modern technology. And it will be fascinating to get all the details on what’s inside the device, especially the motion sensors.
The new iPhone and Apple Watch are just a small sample of new devices sporting the latest generation of motion sensors. Without them, the devices wouldn’t be able to replace the clunky GPS on your car’s dashboard.
And forget about fitness tracking functions – there’s no way those exist without extremely advanced motion sensors.
As the size of chips comes down, manufacturing costs drop and functionality goes up. We’re going to see much more advanced motion sensing applications emerge in everyday consumer devices, like the Apple Watch.
And of course we’ll see emerging technologies – things like self-driving cars – introduced in this decade because of advanced motion sensors. Whether or not these cars will get approved by regulators is a different matter.
Today’s motion sensing technology is mind-blowing when you consider what’s inside. Tiny motion sensors in many consumer devices host a compass, an accelerometer and a gyroscope. Without all three they wouldn’t work. But together, these components tell the device how fast it’s moving and how it’s oriented.
Companies that make motion sensors are just one way to invest in wearable technologies, like the Apple Watch.
Analog Devices (Nasdaq: ADI) is another of the largest semiconductor companies in the motion-sensing space, with a market cap of $18 billion. STM Electronics (NYSE: STM) is a slightly smaller manufacturer, with a market cap of $8 billion.
Sensata (NYSE: ST) isn’t in the wearable space per se, but it is especially strong in the automobile industry and is worth a look for those seeking broader exposure.
Motion sensors have been a staple in consumer goods for years, but new advances are making them even smaller and more energy efficient. That’s allowing manufacturers to make sensors that are always on. And this capability is behind the wearable devices – like the upcoming Apple Watch – that are able to track activity around the clock.
We’ll have to wait for the Apple Watch’s release to find out exactly which companies have sensors inside. Rest assured, the moment the device is released you’ll know exactly how many sensors are in it (expect at least 10) and which publicly traded stocks have exposure.
Motion sensing stocks are just one way to gain exposure to today’s most popular wearable devices. There are other ways too, of course, including the companies that make extremely durable screens and applications.
If you’re interested in learning more, we’ve recently put together a report that details one specific way to invest in the Apple Watch.
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