Apple Inc. (AAPL): Is It Time To Wear Your Computer?

The digitization of everyday products has been going on for decades with items around our homes. For example, a microwave is far more intelligent today than it was 10 years ago. TVs, in fact, are quickly morphing into Internet portals, absorbing Wifi connections to directly stream content from companies like Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN).

So why not have glasses act as a carry around computer screen? Google certainly has the money to support this project. Though I doubt too many people feel their phones isolate them socially, having an innocuous “pop up screen” is an idea that could be quite desirable from a convenience standpoint in cars, meetings, and just tooling around the house. Add in functional voice control and you have an impressive option.

Functionality?

Google’s glasses, then, are an unobtrusive item that could materially benefit users. Leave the phone on, stick it in a pocket or purse, and let the glasses be the primary visual device. That’s far more compelling than looking at your wrist every two minutes. Brin could be on to something, especially if Google can throw some advertising up along the way.

One thing a watch might have going for it, however, is the medical angle. Sensors for monitoring a person’s vital statistics was another functional item mentioned to Reuters. That could prove to be a compelling selling point for many people. In fact, such sensors connected to the Internet could allow patients to be treated in their homes instead of in medical facilities.

So, for a niche group, an iWatch might make some sense and help keep the nation’s medical bills down. That’s probably not enough of a market to justify a big iWatch push, though.

Keeping sales up

The problem that both Apple Inc. (NASDAQ:AAPL) and Samsung face is the saturation of the mobile device market. Without a new device, they will have trouble expanding their businesses. The computer watch isn’t compelling enough to think that it will be the next big breakthrough for either company. Investors shouldn’t buy these mobile giants hoping it will be.

Google’s Glass, meanwhile, looks far more desirable on a functional level. It could be the product that helps move the search and advertising giant into the device space in a differentiated way.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.