(Australian Associated Press)
An Adelaide technology company says it has sold 25,000 units of its all-in-one children’s smartphone, watch and GPS device in the first half of fiscal 2020, up 127 per cent from the same time in fiscal 2019.
ASX-listed MGM Wireless said it made $7.6 million in revenue for the six months to December 31, up 86 per cent from the first half of FY19.
In Australia and New Zealand it sold 19,800 units of the SPACETALK phone/watch, up from 11,000 the same time a year ago.
The hybrid phone/watch has a suggested retail price of $350, although it also requires a monthly subscription.
“We’re accelerating momentum on our strategy of selling a high-quality, reliable children’s mobile phone in the fast-growing wearables category,” chief executive Mark Fortunatow said.
“In the western world, we are the market leader in this early stage of a brand-new retail category – children’s wearables – which is growing extremely quickly.”
Analysts anticipate that global spending on wearables will be $US52 billion in 2020, with smartwatches taking up most of that, Mr Fortunatow said.
The company began selling its Spacetalk watch in the UK last year, initially via a website and later through Sky, selling a total of 5,200 units.
Mr Fortunatow said that JB Hi-Fi and Officeworks would be promoting the watch during the back-to-school period and that MGM is advertising it on TV during the Australian Open tennis.
MGM is also negotiating with Australian and overseas mobile network operators (MNOs) and expects to reach agreement with more.
“Spacetalk enables MNOs to acquire a new category of customer, a 5-10 year-old child,” Mr Fortunatow said.
“They’re currently not selling any mobile network services to young children, especially on a plan – so this is a great opportunity for MNOs.”
At 1211 AEDT, MGM Wireless shares were unchanged at 27.5 cents.