A recent report by Gartner has predicted that the worldwide shipments of wearable devices will reach 225 million in 2019
Fossil Group has announced its plan to sell select smartwatch technology to Google for a staggering $40 million. The agreement between the two covers intellectual property (IP) related to a smartwatch technology currently under development by Fossil Group.
Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer, Fossil Group, said, “We’ve built an advanced technology that has the potential to improve upon our existing platform of smartwatches. Together with Google, our innovation partner, we’ll continue to unlock growth in wearable devices.”
Interestingly, a recent report by Gartner has predicted that the worldwide shipments of wearable devices will reach 225 million in 2019. Gartner has also predicted that the end-user spending on wearable devices will reach $42 billion in 2019. A majority of that, $16.2 billion, may be spent on smartwatches.
Fossil to retain 200 R&D team members
As part of the transaction, a portion of Fossil Group’s research and development (R&D) team currently supporting the transferring IP will join Google. Fossil Group has also announced that it will retain more than 200 R&D team members to focus on innovation and product development.
McKelvey added, “Fossil Group has experienced significant success in its wearables business by focusing on product design and development informed by our strong understanding of consumers’ needs and style preferences.”
Stacey Burr, vice president of product management at Google’s Wear OS, said, “Wearables, built for wellness, simplicity, personalization and helpfulness, have the opportunity to improve lives by bringing users the information and insights they need quickly, at a glance. The addition of Fossil Group’s technology and team to Google demonstrates our commitment to the wearables industry by enabling a diverse portfolio of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer.”