You are absolutely wrong. The quality of the data presented back to the user is as much in the hardware as in the software. Although many of these watches use the same hardware system to measure the raw data, it is the measuring algorithm that makes the difference.
If you do a bit of research then you will realize that a well implemented algorithm on this LED system is able to measure heart rates very accurately and is even able to analyze other metrics that the competition is unaware of being possible. Examples are systolic pressure, heart rate anomalies etc. I'm not an expert myself, but the guys that I work with have shown me things that would blow your mind.
Algorithms are software based. The hardware and technology is still the same.
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