Tim Cook thinks Google Glass will be a difficult sell, primarily due to its lofty price tag. He also stated that, “I don’t know a lot of people that wear them that don’t have to.”
So will he be right? Many assume he is betting on a smart watch to get Apple Inc. (NASDAQ:AAPL)‘s foot into the wearable technology door. Google Inc (NASDAQ:GOOG) is moving full-steam ahead with its glasses, however, and they may not be the only company planning on doing so.
Windows Glasses?
The newest rumor revolves around a pair of smart glasses made by Microsoft Corporation (NASDAQ:MSFT). Samsung is also rumored to be working on its own web-connected glasses as well. According to one source for the New York Post with knowledge of both companies’ glasses projects:
“There is quite a bit of interest from Samsung and Microsoft… Anything that involves software and operating systems is going to have Microsoft’s attention.”
Many of the speculation seems to stem from Microsoft Corporation (NASDAQ:MSFT)’s previous dealings with high-tech glasses maker Vuzix Corp. Samsung ordering high-tech lenses from Israel-based Lumus has also led to speculation.
Rumors aside, it wouldn’t be unlike Microsoft to copy…
It wouldn’t be unrealistic to assume that Microsoft Corporation (NASDAQ:MSFT) may be following Google Inc (NASDAQ:GOOG) on the whole smart glasses thing. After almost completely missing out on the mobile revolution before finally releasing Windows 8, the company may be wanting to get into the next big thing early this time around instead of playing catch-up. “Smart glasses” would most likely also compliment their new Xbox One, Windows Phone, and the entire Windows 8 ecosystem nicely.
It may also sell more glasses than Google Inc (NASDAQ:GOOG), especially if it can do it cheaper and have the glasses connect into a succinct, already-established ecosystem as well. Or maybe it will just wait and see and let Google test the waters first, and then move in if the market solidifies and establishes consistent demand from consumers.
Augmented reality glasses to go with the new Xbox and Kinect sensor would without a doubt attract a lot of attention and demand, especially if they could do everything that the Google ones can do as well.
After the popularity of the iPhone and iPad were already well known, with much of their success attributed to the rise of the retail Apple stores, Microsoft also started to “pull an Apple,” creating the hybrid Surface tablet in-house, offering it (at least in the beginning) exclusively in its new “Microsoft Stores”– which often look eerily similar to Apple Inc. (NASDAQ:AAPL)’s retail stores. Could Google Inc (NASDAQ:GOOG) now be attempting the same strategy with the release of its glasses?
Google Glass stores?
Like Microsoft and Apple Inc. (NASDAQ:AAPL) before them, Google may be looking to get into retail as well. According to Business Insider, Google may use these retail stores to sell its Internet-connected smart glasses to customers. While still only a rumor, the stores totally make sense – as they would offer a hands-on experience (including training) for Google Inc (NASDAQ:GOOG)’s revolutionary product. It would also allow Google to show off other products as well, and compete even closer and more competitively with Apple and Microsoft. Consumers may soon have three different choices when going to the mall when looking for new high-tech gadgets.
The stores would also help consumers with the learning curve of Google Inc (NASDAQ:GOOG)’s new technology, just like Apple stores did with all of their iGadgets. Microsoft attempted to do this with Windows 8, but disappointingly it seems there are still many critics of the new Windows OS. This may not have been as much the case if the Microsoft Stores were more visible to the public in the beginning.
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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