- Google filed new patents for the Google Glass, which indicates that the designs have radically improved.
- Going forward, Google Glass may grow into a significant contributor to Google revenue.
- However, other business developments will also contribute to top line sales growth.
Google (NASDAQ:GOOG) has redesigned the Google Glass, and this time around the design adjustment may be just enough to keep the critics from throwing salt at the design.
According to Glass Almanac:
US Patent D710, 928S was granted to Google engineer Mitchell Heinrich on August, 12 2014. The patent appears to be focused solely on a new version of Google Glass that looks a lot less obtrusive than the current model and may finally remove the robot stigma that some Explorers have been feeling out in public. Heinrich has been instrumental in the development of Glass along with Isabelle Olsson. Between the two of them there are no less than three dozen patents granted to Google already.
By making the projector inside the glass, rather than outside, people are a little more oblivious to the existence of a computer. In fact, the new design is much more compatible with designer label glasses frames. Google Glass can co-exist in the glasses ecosystem by giving consumers the ability to integrate prescription lenses, but it can also offer health features, without being limited to being a native device that modern smartwatch devices are currently.
Google glass Annual unit sales forecast
Source: BI Intelligence
Over the next five years, Glass shipments are expected to grow at an exponential rate. The revenue contribution from this segment could grow into a meaningful amount when compared to consolidated sales figures.
According to BI Intelligence:
We at BI Intelligence expect unit sales of Glass to climb sharply in the years after its official launch, to 21 million units in annual sales by year-end 2018. At $500 per unit, this equates to a $10.5 billion annual market opportunity.
Admittedly, Google has never created a whole new consumer electronics category from scratch, so we have no historical context to work with. However, if this grows into a $10 billion category, the business may have significant contribution to revenue growth.
Over the past five years Google’s revenue growth has declined, but with the introduction of new product categories, sales growth may be sustained at a slightly higher growth rate. However, with a $59 billion revenue base, it will be difficult as the business has grown into a rather large entity when compared to other tech companies. However, beyond Google Wear, and Glass, Google is becoming an internet service provider, and is also developing unique solutions in the car market. Its business is extremely profitable, but the added growth from new categories adds to the overall appeal of investing into Google.