Google pays Fossil $40M for smartwatch IP to compete with Apple Watch

Google's attempts to take on the Apple Watch in the wearable devices market with Wear OS may receive a boost, after the revelation the search giant will be paying watch maker Fossil $40 million to buy the company's smartwatch-related intellectual property.

The purchase will see members of Fossil's research and development team move over to Google, along with the IP, which is apparently for smartwatch technology that has yet to appear in a commercial product. The deal is expected to be finalized later this month, though relatively few details about what the IP is for have been released, except that it is a product line.

The IP is based on a technology that Fossil acquired as part of its purchase of wearable devices startup Misfit in 2015, a deal itself worth $260 million Fossil EVP and chief strategy and digital officer Greg McKelvey advised to Wareable. "It's based on something out of our timeline, it's new to the market technology and we think it's a product that has features and benefits that aren't in the category today," claims McKelvey.

Google VP of Project Management of Wear OS Stacey Burr advised to the report the new product line will work within the existing Wear OS ecosystem, devices running on Google's wearable device operating system formerly known as Android Wear.

"We saw some technology that they were developing that we thought could be brought out in a more expansive way if Google had that technology, and was not only able to continue to use it with Fossil but bring it to other partners in the ecosystem," notes Burr. "It's about bringing great features to the widest numbers of on-the-go consumers."

Fossil is still planning to launch multiple devices using the unnamed technology, with the firm still focused on finishing its development. McKelvey adds "The Fossil Group will bring the product to market, across our full breadth of brands over time, and then in true Google fashion, the technology will be expanded across the industry over time to benefit all."

There have been rumors Google would produce its own Pixel-branded Wear OS smartwatch, putting Google directly in competition with Apple in the wearable device space instead of allowing third-party vendors to use its operating system. While it is unclear if the Fossil deal will impact that alleged device, Burr stressed the technology resulting from the purchase would be made available to all existing and future partners.

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15 Comments

spice-boy 1450 comments · 8 Years

About 5 years ago

We'll see if this is a smart move.

minisu1980 132 comments · 10 Years

“... then in true Google fashion, the technology will be abandoned within two to three years because it was not an immediate success.”

There fixed it for you

McKelvey. Motorola, Boston Dynamics, Google Fiber the list goes on. It seems anything that actually takes work to accomplish Google gives up on, with the noteable exception of using user data to sell ads.

qwwera 282 comments · 8 Years

Competition is ALWAYS great for consumers, I love my Apple Watches, but curious to see what Google is able to achieve in the future. Their current wearables are pretty bad.

cornchip 1943 comments · 11 Years

qwwera said:

Their current wearables are pretty bad.

Because they're not a design company. They're a data-mining, ad-supported, Internet search company.

gatorguy 24602 comments · 13 Years

minisu1980 said:

“... then in true Google fashion, the technology will be abandoned within two to three years because it was not an immediate success.”

There fixed it for you McKelvey. Motorola, Boston Dynamics, Google Fiber the list goes on. It seems anything that actually takes work to accomplish Google gives up on, with the noteable exception of using user data to sell ads.

Google Fiber is still a thing, just not rolling as quickly as they started out doing. The entrenched companies like Comcast and Spectrum and Verizon used a multitude of delay tactics to keep Fiber off "their poles" and out of their markets. But Google's Fiber ambitions are not dead. Between a significant investment in Musk's StarLink and the purchase of Webpass it appears they'll add some tactics of their own to bypass those traditional providers roadblocks and finish that last mile.

Getting rid of Boston Dynamics made sense to me since it had taken on creepy and potentially militaristic tones with the humanoid like robots we've seen on YouTube. Same with Schaft. Developing human and animal-like robotic hardware isn't a good match for Google IMO and with Rubin gone it was time for a change, especially as Google was making a clean break from any potential military partnerships. But the software teams they acquired are still actively developing robotic tech with either 5 or 6 robotics companies under their wing in the XLabs. A lot of it will end up in their AI-driven products.

Motorola? I suppose the company itself outlived it's usefulness. They acquired them at a critical junction in the smartphone patent wars, and it helped end the IP battles. Soon after Google and Apple called a truce and new fights were no longer breaking out among OEM's. Google obviously didn't give up on building smartphones tho after they gave up on Moto. They retained all the needed IP, hired away Moto's hardware guru, and acquired the necessary engineering talent to design new smartphones and features in-house, all while shedding the ponderous manufacturing structure, IP licensing management, and sideline businesses like cable boxes that came bundled with Motorola.

It no surprise when a plan doesn't stick to the script. If the basic idea was a good one to begin with then smart companies don't abandon it, just pause and rework some of the screenplay, maybe bring in some new writers too. That's what Google appears to be doing with smartwatches. They have little chance of "beating Apple" at it of course, but I'd really doubt that's the intent as it would be a silly reason. They can be successful and even find niches where they can dominate without being Number One.