With Google and Intel teaming up with luxury brands, it’s clear that they are deeply worried about loosing out again.
‘Loosing out’? Well, between Apple and Google, who makes the most money from Smartphone? (Hint; it’s Apple, by a massive margin.)
With this in mind, it’s fair to say that Google and the like are able to make serviceable and cheep wearables, but would suffer to get market share or relevant revenue. This is where the luxury brands come in.
From Tag to Mont Blanc, luxury brands are looking to bring out a smart device of some sort with Google. If they do so, they don’t really have to do anything other than make sure it looks on brand and has a markup that keeps it in line with their brand.
Thing is, I don’t think it will get that far. These announcements all came as reactions to the Apple Watch and as such, it’s safe to say these deals weren’t really though through. Tag don’t want to make a Smartwatch any more than Rolex do.
Think on the typical android user. Demographics show that they are typically not ‘tech savvy’ and to the most part don’t spend money like Apple users do. How many people wearing £5,000 – £25,000 watches have android phones? The answer is not many. So will Android users pick up a premium Smartwatch? Chances are, no. Will luxury brands sell things that mimic their core products at a low price? The hell they will.
The problem for these companies is simple, they are worried about missing an opportunity and haven’t once considered, should they make their own opportunity.