Apple Inc. (AAPL): The Unassessed Risk of the iWatch

This project in my opinion is one of the most ambitious technological advances in a long time.  To pull off what they are hoping will take some true genius-level talent.  But Google succeeds at a lot of things.  I find it unlikely that Google has come this close only to be denied.  Google Glass could be the next must-have tech product.

If that comes true, look for high-end glasses company Luxottica Group SpA (ADR) (NYSE:LUX) to be adversely affected.  You may not have heard of this company, but I’m sure you’ve heard of their products.  They are the parent company behind Oakley and Ray-Ban, to name a few top brands, and make the parts for other companies like LensCrafters.  While Google Glass isn’t a glasses substitute, it would be hard to wear both at the same time.  If there was to be a shift in spending, especially with sunglasses, Luxottica would be the first to feel it.

But then again, is the average consumer really looking for something quite as elaborate as Google Glass, or will something simpler do?  If it will, Luxottica may be in business.  The Oakley Split Thump already offers Mp3 playing, and the Oakley O ROKR already offers bluetooth capabality.  But if consumer demand more than this, fellow Fool Matthew Luke has pointed out that Luxottica holds many patents for taking their smart glasses to the next level.

What They Can Do

Wearable tech is coming.  Both Fossil and Luxottica Group SpA (ADR) (NYSE:LUX) will have to offer products to compete in a wearable tech market.  Sure, we are probably still a couple years away from these particular products becoming reality, but Fossil and Luxottica can’t afford to wait and let the tech companies get the upper hand.  They are going to have to proactively seek out solutions now, to stay on top later.

My Takeaway

This is a lot of speculation, but I think it highlights an important quality that one should look for in companies:  adaptability.  The world is constantly changing.  How well can a company adapt and keep up with consumer whims and demands?  One needs only do a search to see how excited the public is for smart watches and smart glasses.  Apple Inc. (NASDAQ:AAPL) and Google know how to adapt.

But what of Fossil and Luxottica?  Time will tell.  But right now it seems like a huge shift is about to happen.  I haven’t heard a plan from either company, but it appears that Luxottica may be better prepared than Fossil at this point.

The article The Unassessed Risk of the iWatch originally appeared on Fool.com and is written by Jon Quast.

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