Smartwatches have made themselves a different market in the wearable’s space. There are a lot of brands entering this space now. There are different fitness trackers in the market and there are many brands making those fitness trackers. People are leaning towards smartwatches more than the traditional watches. This is a sudden change in the wearable market which was pretty stagnant for many years.
That said, the groundbreakers in the game like Fossil who have high-end smartwatches and are brilliant at their craft. The company was in news recently not for their watches but for the business they did. They did a nice deal with the internet giant Google. The American company had to tear a huge check for the technology they bought from Fossil. Fossil sold its smartwatch technology to Google for $40 million. This is very good news for Google fans and even better for the company Fossil.
Fossil’s smartwatch segment has been reaping good numbers. It is its fastest growing business and has successfully launched smartwatches which were developed from scratch across 14 of its brands which are licensed altogether. That said, Google’s buying of the technology does not mean that Fossil will totally stop developing the smartwatches. It will continue to run its 200 members strong research and development team. The only difference is this time it will be helped by the internet giant Google.
Google’s intention, however, is not that clear. There are rumors that it is going to launch its own line of watches to counter Apple Watch but that might not be entirely true. It has been working relentlessly on its Android Wear OS which has been renamed to Wear OS. It can already connect and replicate Google apps on watches but will allow third-party applications to do the same. That said, Fossil’s research might help Google in building another mighty OS.
This is, however, not the first time it has partnered with a fashion brand of sorts. It has previously partnered with Tag Heuer, Emporio Armani, Huawei, Casio and now Fossil. It will be interesting to see how they use Fossil this time around. It has always been this kind of partnerships which have developed the Wear OS and its experience overall. Google will most probably take Fossil’s understanding of their customers. They have a great sense of style preference as well. So that might be one of the reasons for acquisitions. However, it is only guesswork as of now and the deal will fall through by the end of January when Google’s statement might help us understand more from this deal.