Echo Frames for Delivery?
According to various reports, Amazon is working on a new pair of Echo Frames that will have an embedded display and potentially cameras. But the new product is not necessarily aimed at the slowly-emerging market for consumer AR. Rather, the products are being designed to speed up product delivery. The glasses will support mapping that will help drivers with the last 100 yards of delivery, while the camera is to take those all-important snaps of the delivered package. The goal? To shave a few seconds off each delivery
The Circana Take:
- This is a long-term project and we’re not likely to see the results in the near term. The biggest challenge, apparently, is developing a set of glasses where the battery will last for the full delivery shift (that’s eight hours).
- The enterprise market offers more near-term potential for AR glasses than the consumer market as it is a less price-sensitive market. If the new glasses meet a clear need, the value proposition will justify the cost.
- According to Reuters sources, the last set of Echo Frames sold fewer than 10,000 units, which is another good reason for Amazon to pivot to an enterprise play.
Baidu launches glasses
China-based Baidu has launched a pair of smart glasses (AI-powered, of course). The glasses will run on Baidu’s ERNIE generative AI platform and were designed to become “a private assistant” according to various reports. The glasses come equipped with cameras, as well as a voice interface, and look set to compete against Meta’s Ray-Ban glasses. Except, of course, the Baidu glasses are unlikely to come to the US, and Meta’s glasses are not officially sold in China as its servers are blocked.
The Circana Take:
- As noted, we do not expect these glasses to come to the US market. However, in this slowly-emerging market, all new entrants will help increase consumer awareness of the category, and can potentially help to push the market – both interest and capabilities – forwards.
Black Friday deals galore
Black Friday is just days away and the deals are starting to ramp up. With consumer ownership of smartwatches at just over 40% of the adult population there is a significant slowing in demand for a smartwatch. Indeed, ownership dropped nearly two percent since the spring as New Year Resolutions fell apart and newly-purchased smartwatches cast aside. As a result, we expect to see some very aggressive smartwatch discounts as the various OEMs look for new growth. Garmin, for example, has seemingly being running promotions all year, but is now offering some of its high-end watches (Epix for example) at nearly a 50% discount. Apple is offering far less of a discount, but the Apple Watch 10 is now $50 off ahead of Black Friday – the lowest it has been so far.
The Circana Take:
- While these promotions can help drive new sales, the real challenge is keeping these new owners engaged for the long-term. If the smartwatch is given as a gift, there is a far higher chance than the smartwatch will be discarded within six months.