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Why shoppers are set to splurge on smartwatches

Wearable devices are poised to be some of the most popular gadgets this holiday shopping season. And while smartwatches are among the most expensive, consumers appear more likely to splurge on them, according to recent research from Argus Insights.

That's despite a 4.36 percent year-over-year decline in consumer demand for wearable devices from October 2014 to October 2015, Argus Insights said in a report last week. For smartwatch shoppers, quality and style trump price, the report said.

"Consumers are proving to be less price sensitive to what they consider to be a quality smartwatch experience," the report said. "Apple's high-end devices receive the highest praise from consumers, proving that consumers are willing to spend a little extra money on a strong product."

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Cost does remain a factor for some, however. Among those who said they don't intend to buy a smartwatch in the next 12 months, 41 percent cited cost as the main reason, according to Carolina Milanesi, chief of research at Kantar Worldpanel ComTech.

But to those in the market for smartwatches, brand name and style seem to trump the sticker price, according to the Argus report.