Sony Corporation (ADR) (SNE), Google Inc (GOOG): The Coming Wave of Smartwatches

At the D11 conference back in May, Apple’s CEO Tim Cook said he found the idea of wearable computing devices to be profoundly interesting. Moreover, he described such devices as a potential branch in the tree of iOS.

And that’s really the heart of the matter. Hedge fund manager David Einhorn, long an Apple Inc. (NASDAQ:AAPL) bull, has argued for the stock on the basis of Apple’s ecosystem. That is to say, a consumer who buys one Apple Inc. (NASDAQ:AAPL) device is likely to buy more.

Adding wearable computing devices to the iOS family would go a long way towards keeping Apple Inc. (NASDAQ:AAPL)’s customers loyal. As with any Samsung Galaxy watch, a consumer who buys an iWatch is likely one who would stick with the iPhone — year after year, model after model.

Google is said to be working on its own watch

The Wall Street Journal reported on Thursday that Google itself has a watch in the works, and suggested that it could be released this fall. Like Sony’s SmartWatch, the Google Inc (NASDAQ:GOOG) watch would likely interface with all Android devices — and maybe even Google Inc (NASDAQ:GOOG) Glass.

If Google Inc (NASDAQ:GOOG) is planning to roll out its own watch, it lends credence to the idea that the search giant is seeking to take back control of Android. Rather than sit back and let its hardware partners like Sony and Samsung tackle the market, Google Inc (NASDAQ:GOOG) is out there working on its own device.

At this point, it remains highly speculative, but it does suggest that — as had been rumored in the past — a wedge might be forming between the Android maker and its hardware partners.

Will they sell?

Still, the most important question remains: will these watches actually sell? In addition to Sony’s first SmartWatch, other devices — like the Pebble — are already out there. And though they have their devotees, they haven’t seen mainstream adoption just yet.

The fact is, the wrist remains an important area for jewelry, and the expensive watch is one of the only widely accepted forms of male jewelry. At a recent industry group meeting, Swiss watchmakers laughed off the concept of the smartwatch as posing any real threat.

But if they do sell, they could become a crucial part of Android and iOS. Anyone invested in the tech space should keep an eye on their development.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Coming Wave of Smartwatches originally appeared on Fool.com is written by Salvatore “Sam” Mattera.

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