Smart glasses – the next craze?

Sourced from https://medium.com/swlh/every-thing-you-need-to-know-about-smart-glasses-eb3d2e0a62de

Smart glasses, albeit relatively unknown, have existed for around a decade. Google released Google Glass in the early 2010s which functions as a hands-free smartphone. However, Google’s smart glasses were deemed a commercial failure and have since not been available for consumer purchase. Many owe this failure to the technology being ahead of its time, and that Google failed to market the technology in a way that consumers recognised that it solved a problem. This, combined with the numerous device issues, meant that Google was unable to help consumers understand the benefits of owning a pair, thereby failing to create a demand for this product.

However, it appears as though Google is attempting to re-penetrate this market. Earlier this year, Google announced the acquisition of North, a technology-based start-up company, which focuses on smart glasses and augmented reality. North, founded in 2012, have previously released Focals - smart glasses which have been paralleled to a smartwatch for your face. You can do many of the same things with Focals as your everyday smartwatch: call an Uber, ask Alexa or even read WhatsApp messages, all while wearing something which looks no different to a regular pair of glasses. The reviews of Focals were largely positive, and North believes Google can help bring their next version of smart glasses more readily to market.

Focals aims to bring convenience to another body part: eyes. Innovation within technology has developed revolutionary products: ranging from Apple’s initial iPod, to Tesla’s driverless cars. This wave of innovation continues to come in many different forms, and North have attempted to revolutionise a regular pair of glasses. North’s Focals appears to a by-passer to be a standard pair of glasses, albeit with a wider stem. Nonetheless, this product seems indistinguishable from an ordinary pair of glasses, complementing the idea that technology is to make the consumers’ lives easier whilst blurring into the background. The glasses’ stems contain mini projectors which project a screen onto the lens, displaying any notifications you may have. The screen is supposed to provide a brief notification or interface, mitigating any distractions to your daily life. Enhanced convenience is meant to be at the forefront of this technology, preventing you from having to check your phone or smartwatch for any needs.

Despite the price of the acquisition not being disclosed, it was estimated to have been around 180 million USD. This is not the first major wearable technology acquisition by Google; Fitbit was acquired by Google earlier this year for 2.1 billion USD, signalling the corporate craze surrounding wearable technology. The wearable technology market is expected to grow at a tremendous compound average growth rate (CAGR) of 15.9% from 2020 to 2027. Thus, all key market players are investing heavily into this, as companies strive to perfect their delivery of these products to market and achieve a seamless integration into everyday life for this newest wave of technology. This is apparent from the most significant players, such as Apple with their increasing focus on wearable technology, consisting of AirPods, the impressive Apple Watch, and the rumoured Apple Glasses.

Strategically, this acquisition makes sense given the way that the technology industry is heading. Technology M&A activity has been rife this year, and as aforementioned, technology companies are aiming for their products to seamlessly integrate into everyday life. Or alternatively: “where all your devices just work together, and technology fades into the background” as said by Rick Osterloh, senior vice president of devices and services at Google. Many companies are now trying to build consumer ‘ecosystems’, whereby products work effortlessly together to improve consumer experience (and hook consumers to your particular brand). Apple has implemented this strategy most successful thus far, with the impressive yet rigid integration of iPhone, AirPods, and Apple Watch. Now, it appears Google is attempting to emulate this strategy while utilising the growth of wearable technologies. Future smart glasses made by Google are sure to complement Google’s already impressive line-up of products ranging from Pixel smartphones to Google Nest, a more recent development. 

Consumer technology products are hard to develop for smaller firms like North, given the much more established research and development departments from the most recognised companies, in addition to the financial backing and ‘ecosystem’ that comes with them. This makes it difficult for companies such as North to firstly penetrate the market, but also remain competitive in an industry which frequently presents new competition. 2019 saw a 30% decline in investments into start-ups focused on consumer technology. Well-established ecosystems are providing a difficult barrier to entry for new consumer technology products, and investors are starting to become apprehensive regarding this. Hence, this acquisition from Google may present North the opportunity to withstand these pressures. Google can offer the resources mentioned prior to North, which would allow North to more successfully deliver their newest version of smart glasses to market and improve North’s business plan. Services and product-compatibility are now a vital component of technology; thus, consequently, the ability to integrate North’s products into Google’s ecosystem will most likely improve the success of any future products.

It will be interesting to analyse the success of future smart glasses which Google brings to market. Google’s Google Glass website states “the journey doesn’t end here”, implying that there is some form of current development for smart glasses. Smart glasses would seem the most appropriate next step for consumer technology firms, given the fact that smartwatches have been around for several years now, and consumer technology is such a fast-paced industry. Rumours surrounding Apple’s own smart glasses have been fruitful, with some rumours even suggesting to expect a release next year. Hence, it would seem fitting that Google would be developing their own pair, marketed to consumers this time, lest Apple being the sole operator in the market. Would a perfected product trump other technology devices and lead to the demise of others? The exciting and innovative industry of consumer tech never fails to impress and revolutionise. 

By Josh Davies