Yahoo is setting its sights on the growth of wearables and other mobile devices as the internet star of the last dotcom boom tries to transform itself into a world of apps.

Adam Cahan, senior vice-president of mobile, said wearable devices such as the Apple Watch present a big opportunity for Yahoo next year, both as new homes for existing apps and to create new user experiences.

Mr Cahan said he expected Yahoo and the wider industry to benefit from “huge amounts of future growth”, including an acceleration in the adoption of mobile devices including wearables and the so-called internet of things, where ordinary household appliances are hooked up to the internet.

“We’re talking about a platform that is still growing by leaps and bounds – five times as many devices in front of us – and the categories of devices are undergoing a huge evolution,” he said. “I really try to look at what are the sensors on these new devices, as they enable us to reimagine experiences.”

Yahoo was part of Apple’s launch of the Watch, which is due out next year, developing a version of its Yahoo News Digest product for the wrist-sized screen.

News Digest, which came out of its acquisition of Summly from British teenager Nick D’Aloisio, automatically summarises the daily news and gives links to context.

Mr Cahan said he believed that Apple was “on to a hit” and he was “very excited about consumer adoption” and the potential for some other Yahoo apps to make it on to users’ wrists.

However, he said Yahoo was not restricting itself to one wearables maker and did not rule out creating its own wearable in what would be a rare foray into the hardware business. – ( The Financial Times Ltd)