Premium multinational technology company TE Connectivity Ltd. (TEL - Free Report) recently collaborated with Google Inc. (GOOG - Free Report) for initiating a new process to make smart garments with the help of conventional apparel-manufacturing techniques and tools. As the smart garment industry continues to gain pace, the deal will likely support TE Connectivity’s revenues in the near future. Smart garments are designed so as to better withstand the harsh effects of machine-wash, dry-cleaning or normal wear.
The external environment of an electronics factory is largely different from that of a garments workshop, as the latter is prone to extensive amount of heat and dust that is harmful for technological components. Hence, making a smart piece of garment with conventional apparel-manufacturing tools was a big challenge for TE Connectivity. The company’s Menlo Park, CA-based Wearables Lab heads the collaboration with Google. The Wearables team primarily focuses on developing garment-related technologies across industrial, defense, medical and consumer businesses.
Greater degree of globalization and trade liberalization calls for increased requirement of connectivity in the current era. As a result, TE Connectivity’s non-imitable sensor solutions witness high demand in the modern world.
Almost 26 million smart garments are estimated to be sold in U.S. by the next year. Thus, we believe that TE Connectivity’s collaboration with Google will help it earn greater economic surplus in the near term.
TE Connectivity currently holds a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Active Power Inc. and Mobileye N.V. . Both carry a Zacks Rank #2 (Buy).
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