Internet search giant Google Inc. has purchased WIMM Labs, a wearable technology firm, according to a report by GigaOM. The deal was completed in 2012.
Los Altos, Calif.-based WIMM Labs offers a platform which enables smart micro devices to deliver information at a glance in a wearable form. The company’s platform for wearable technology and other connected devices is available for licensing by major consumer brands in mobile, sports, finance, consumer electronics, among many other industries.
Though Google has made no official announcements to make a smartwatch, the deal signifies that the company plans to ramp up its efforts in the wearable computing market.
According to experts, wearable computers or smartphone devices are the next step in mobile electronics. The tech companies are also blending the fashion quotient to market their new unique devices. The success of these wearable computers depends on the fashionable accessibility of such devices.
A number of tech companies are exploring the segment. Sony (SNE - Analyst Report) for one has come up with a smartwatch that one can wear on their wrist to check emails and access music stores in addition to checking time. Other companies like Apple Inc. (AAPL - Analyst Report) and Samsung Electronics Co. are also expected to introduce a wristwatch-like device, with features of a smartphone this September.
Google is known for its focus on research and development, which empowers it to launch new and innovative products. Last year, Google announced that it is testing a new eyewear which is scheduled for a worldwide release in the second half of this year. The idea behind the Internet-enabled eyewear was much like a wearable smartphone, which will allow the user to receive calls, take pictures, send messages, record a video, use Google Maps and perform other functions via voice-activated commands.
In the second quarter, Google’s earnings of $7.81 per share missed the Zacks Consensus Estimate by $1.23 or 13.7%. However, gross revenue came in at $14.10 billion, representing sequential and year-over-year growth of 1.0% and 19.5%, respectively.
Google currently carries a Zacks Rank #4 (Sell). Another stock that has been performing well and is worth considering is SanDisk (SNDK - Analyst Report)), carrying a Zacks Rank #1 (Strong Buy).