Is Google’s Rumored Pixel Watch Dead?

The smartwatch may have been killed off years ago.

| More on:

The booming smartwatch market is helping drive soaring shipments in the broader wearables market. Apple (NASDAQ: AAPL) continues to lead the way with its category-defining Apple Watch, which all competing smartwatches are inevitably measured against. “Compared to the rest of the smartwatch market, the Apple Watch Series 5 is in a completely different league,” The Verge writes in its review of the latest iteration.

Rumors continue to swirl that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google has a Pixel Watch in the works. However, the search behemoth might have actually killed off the gadget years ago.

Don’t expect a Pixel Watch next month

Business Insider reports that Google hardware chief Rick Osterloh actually axed the first-party smartwatch back in 2016, shortly before the company’s “Made by Google” hardware event in October of that year. Google unveiled its first generation of Pixel phones and Google Home smart speakers at that event.

Osterloh had just been named head of Google’s nascent hardware business a few months prior, and shuttered numerous initiatives including Project Ara, which was exploring modular phones, according to the report. Google had partnered with LG to manufacture its smartwatch, but Osterloh was reportedly dissatisfied with the device’s aesthetic, as well as its functionality. LG would proceed to release the smartwatches under its own brand in 2017.

Perhaps most importantly, no Pixel Watch is expected to be unveiled this year, according to BI’s sources. Earlier this week, Google announced its hardware event is scheduled for Oct. 15.

Then why did Google just buy smartwatch tech?

The report makes Google’s acquisition of smartwatch tech from Fossil for $40 million in January seem bizarre. That deal included intellectual property (IP) that the accessory maker was working on, as well as part of Fossil’s R&D team. Fossil has been one of Google’s most consistent and loyal Wear OS partners, and watches are the consumer discretionary company’s biggest segment.

“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,” Wear OS chief Stacey Burr said in a statement at the time.

Why would Google scoop up smartwatch IP if it wasn’t building a Pixel Watch? It was never clear what kind of IP the company acquired, but it’s worth noting that Google again changed strategic course in hardware just two months later when it reportedly started ramping down its tablet and laptop efforts. Osterloh subsequently confirmed that his team was bailing on tablets but still pushing forward with laptops.

Wear OS has largely been supplanted by other platforms, including Samsung‘s Tizen and Fitbit‘s FitbitOS, so maybe it’s better for Google to sit this one out.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, and FIT. The Motley Fool has the following options: short January 2020 $155 calls on Apple and long January 2020 $150 calls on Apple. The Motley Fool has a disclosure policy.

More on Tech Stocks

stock chart
Tech Stocks

This Stock Is Down 35% From its High: The Business Looks Better Than the Price

Constellation Software is down about 35%, but revenue and cash flow are still growing, making the drop worth a closer…

Read more »

space ship model takes off
Tech Stocks

This Canadian Growth Stock Isn’t Cheap: I’d Still Buy It Before the Next Jump

MDA Space looks pricey, but its surging revenue, massive backlog, and defence-driven contract wins could help earnings grow into today’s…

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Tech Stocks

1 Magnificent TSX Stock Down 33% to Buy and Hold Forever

Constellation Software stock has fallen sharply, but strong cash flow, revenue growth, and continued acquisitions could make this TSX tech…

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

Forget the Hype: These 2 Canadian AI Stocks Are Already Profitable

Two Canadian AI stocks are posting real profits and have raised guidance. Here's why Kinaxis and Celestica deserve a closer…

Read more »

abstract visualization of digital data processing
Tech Stocks

This Stock Has Already Rallied: Here’s Why the Best Gains May Still Be Ahead

A stock that has already doubled can still be a great buy if the business is growing fast enough to…

Read more »

chart reflected in eyeglass lenses
Tech Stocks

2 Undervalued Canadian Stocks Set for Massive Gains

With healthy financials, strong growth prospects, and discounted valuations, these two undervalued Canadian stocks offer attractive buying opportunities.

Read more »

young adult uses credit card to shop online
Tech Stocks

2 Canadian AI Stocks Worth Buying in September

Shopify Inc (TSX:SHOP) is profitable and has positive free cash flow (FCF).

Read more »

man touches brain to show a good idea
Tech Stocks

The 1 Number Telling Investors This Selloff May Be Nearly Over

MDA Space is down sharply from its high, but its latest results suggest demand is accelerating, not fading.

Read more »