If Google really is planning on opening retail locations for its new Google Glass product, it will need to build them fast and expand its footprint rapidly for them to be visible and accessible enough to the general public. Apple already has a larger network of stores than Microsoft by far, and it seems many don’t even know that Microsoft stores even exist yet. Google will need to avoid this problem.
Apple, as of February, had over 400 stores to Microsoft Corporation (NASDAQ:MSFT)’s measly 50.
The bottom line
While Google Inc (NASDAQ:GOOG) may have the next hottest product on its hands, it may also soon be facing intense competition from rivals like Samsung, who may have cheaper imitation products, as well as competition from other competitors with stronger ecosystems such as Microsoft.
With a $1,500 price tag, the glasses may also be too expensive to just “throw out there.” If Google does indeed open its own retail stores, and successfully increases the footprint of these stores widely enough to where the majority of the general public can actually touch and learn how to use the smart glasses – then they will most likely sell them much more effectively and avoid a product that “flops”.
As articulated by Apple Inc. (NASDAQ:AAPL) CEO Tim Cook:
“There are a lot of gadgets in [the wearable computing] space right now… but there’s nothing great out there. None of them are going to convince a kid that hasn’t worn glasses or a band to wear one”.
People need to get their hands on the product and actually use it and see its unique and great features for it to be successful. Stores with helpful employees who can demonstrate and explain these features can also help accomplish this.
If Google doesn’t want to pay dividends out to shareholders, it should focus on growth– and they have been with projects such as Google Fiber. With plenty more idle cash on its books and now a practical reason to start building out retail stores, why shouldn’t Google build them and grow even more?
Microsoft’s Surface was initially held to a relatively limited network of Microsoft stores, and while it wasn’t necessarily a flop, Microsoft ended up having to strike deals with companies like Best Buy Co., Inc. (NYSE:BBY) to get the Surface more out in the open. While the Surface’s hybrid nature was innovative – it was no iPhone.
Google Inc (NASDAQ:GOOG)’s glasses are more like the iPhone was, however, being completely new and transformational technology – and Google stores could help accelerate their visibility and acceptance by consumers while also speeding up sales.
The article Why This Search Giant Should Make This Rumor Come True originally appeared on Fool.com and is written by Joseph Harry.
Joseph Harry owns shares of Microsoft. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Joseph is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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