NEW YORK (TheStreet) -- For those of you who are saying that Google's (GOOG) Google Glass will not be a major consumer sales success for at least the next two to three years, you are probably right. Two years from now, Google Glass probably won't have hit 1% consumer market penetration in the U.S.
But it will still have been a success. Why? Because of industrial and other business users.
Google Glass will come down in price from the initial $1,500, but even when the price hits $999 and $499 and even if there's a major "killer app," there will be consumer reluctance to buy this product. There is likely greater friction in selling something in that physical form factor, compared to a smartphone or even a watch.
Look at other technologies, however, and you will see that they are often not adopted by regular consumers first:
The car: In the beginning, it was a truck, used for utility of
transporting things, not used by individuals for pleasure.
The fax machine: Before people had them at home, they were in offices.
The computer: Most people first encountered a computer in a
business before they purchased one for home use.
Mobile email: In the early days (1999-2001), the BlackBerry was
exclusively a business product. Only in 2002 did it start to become a
Videotape recorder: First, it was used in studios. Then, in the
1970s, it started migrating to people's homes.
One can easily envision a scenario where a huge percentage of workers (50% or more) in a few short years could be required to wear Google Glass -- or equivalent -- most or all of the time. Here are some of the reasons and benefits:
For people with direct physical consumer contact -- such as in a
car dealership, cafe, hotel or bank -- Google Glass could help identify the
consumer and therefore provide better service.
For supervisors, they would have a much better window into how
each employee is acting in their interactions with customers, at all
times. That whole "This call may be recorded to ensure quality
customer service" now takes on a new meaning. You don't think
Starbucks (SBUX) will require all of its employees to wear Glass? Hotel
receptionists? Car service supervisors? Of course they will!
The military has probably spent billions of dollars over decades
developing something like Google Glass. As expensive as Google Glass
are even today, they are probably a bargain compared to the U.S.
government trying to come up with something of the kind.
Police and other emergency personnel: For liability and
coordination purposes, Google Glass could greatly improve the accuracy
and efficiency of emergency services. Police could identify people,
look up license tags, and record interactions with the public as well
as suspects, far better with Google Glass. Ambulance personnel could
get help diagnosing people who are at risk of dying.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV