Internet search giant
Google Inc.
(
GOOG
) recently announced that it is testing new eyewear in its research
lab, which will be released worldwide in the second half of next
year.
The eyewear is unique as it has a tiny camera embedded in it.
The camera helps to deploy the "heads-up display" through which
data can be projected into the users' vision. The display is
located above the right hand side of the glass and features an
inbuilt camera.
The idea behind this new Internet enabled eyewear is much like a
wearable smartphone, which will allow the user to receive calls,
take pictures, send messages, record a video, use Google Maps and
perform other functions via voice-activated commands. In addition,
another interesting feature called time-lapse capability helps to
take photographs every 10 seconds and one does not need to take out
the phone while clicking the snapshots.
The eyewear will be able to perform most of the functions of a
smartphone or a computer. Thus, Google will offer consumers a
hands-free experience.
However, given the hefty pre-order price of $1500, Google will
have to devise a plan for adoption (either price reduction or a
subsidy of some sort, or collaboration with a fashion brand to sell
it as a fashion item). The sales strategy remains unclear as of now
and the initial product will likely be taken by geeks alone.
According to experts, wearable computers or smartphone devices
are the next step in mobile electronics. The tech companies are
also blending the fashion quotient to market their new unique
devices. The success of these wearable computers depends on the
fashionable accessibility of such devices.
A number of tech companies are exploring the segment.
Sony
(
SNE
) for one has come up with a smartwatch that one can wear on their
wrist to check emails and access music stores in addition to
checking time.
Apple Inc.
(
AAP
L) is also developing a wearable computer.
Google is known for its research and development focus, which
empowers it to launch new and innovative products. In the present
case, 'Google Glass', as the eyewear is being called is still in
development Therefore, customer adoption remains unclear.
In the second quarter, Google's gross revenue touched a record
$12.21 billion. Revenues from both Google-owned and partner sites
continued to grow in double digits on a year-over-year basis.
Google retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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