Intel Corporation (NASDAQ:INTC) is joining forces with designer eyewear label Luxottica Group SpA (ADR) (NYSE:LUX) (BIT:LUX) to launch smart eyewear. The latter is an Italian group that owns luxury brands like Ray-Ban, Persol, and Oakley.
A growing interest in wearable technology
Intel already makes two-thirds of its revenues by selling chips for personal computers and laptops. Now the chip maker wants to expand its horizons after it came late into the smartphone and tablet market. The problem is that Intel Corporation (NASDAQ:INTC) chips are too power hungry for first power-hungry technologies. This prompted manufacturers to choose alternatives. One alternative many tablet makers chose was customizable chips designed by ARM Holdings plc (ADR) (NASDAQ:ARMH) (LON:ARM).
Brian Krzanich (chief executive officer) said, “We expect the combination of our expertise to help drive a much faster pace of innovation and push the envelope of what’s possible.”
A look back at Intel’s other partnerships
This deal is one of the many deals involving Intel’s fast partnership developments in efforts to create wearable technologies. The tech giant previously inked deals with SMS Audio for smartphones, design house Opening Ceremony for luxury smart bracelets, and watchmaker Fossil for fashion accessories. Intel hopes to capture consumer interest with fashionable products as a large number of customers have yet to find a reason to purchase wearable technology products.
Intel Corporation (NASDAQ:INTC) already missed the early boat when mobile phones and tablet computers surged in popularity. With companies like Apple, Samsung, and Google leading the smartphone industry with a strong hold, it is next to impossible to tap into a market that is already saturated. This is a chance for Intel to break into a new market and capture it before it’s too late.
Luxottica Group SpA (ADR) (NYSE:LUX) (BIT:LUX) is a key company in the luxury eyewear market. It owns brands including Ray-Ban, Oakley, Oliver Peoples, Coach, Chanel, Prada, and Versace. Earlier this year, Luxottica teamed up with Google to help design wearable Google Glass.