[Insights] Google Unveils Pixel Watch 2 and Charge 6 Band, Leveraging Generative AI as Key Value Addition

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Google focuses on AI and sensor upgrades with Pixel Watch 2, while Charge 6 smart wristbands may stand out in the market through AI applications.

TrendForce’s Insights:

In early October 2023, Google held its annual fall product launch event, introducing new smartphones, smartwatches, earphones, and AI assistant services. Regarding the Pixel Watch 2, Google opted for a relatively conservative upgrade compared to its competitors, with more significant changes expected in the smart wristband market through the application of generative AI.

1. Google’s New Products Align with Industry Trends, Focusing on AI – Pixel Watch 2 Highlights Sensor Upgrades

The third quarter of the year is an important period for major tech companies to hold product launch events. Following Apple’s event in September and the recently concluded Meta event, Google also hosted its Made By Google fall event in early October. Much like these other companies, Google focused on AI as the central theme of the event, enhancing its range of products and services. The highlights of this event include the Pixel 8 series smartphones, featuring AI-powered image editing, the Pixel Watch 2 with new sensors and monitoring capabilities, and the Pixel Buds Pro smart headphones that can adjust audio settings based on the user’s conversations. Additionally, Google, being a leading player in Generative AI, introduced an AI version of its Google Assistant service called “Assistant with Bard,” which is expected to enhance its app offerings through quick organization, predictive capabilities, and content generation, with deployment on a wider range of devices in the future.

A closer look at the specifications of the Pixel Watch 2 reveals that, compared to its predecessor released just a year ago, the hardware upgrades are not substantial. The primary differences include changes in the watch case material to align with environmental concerns, an upgraded processor, and a slight increase in battery capacity. However, the most significant improvements are in the sensors. The Pixel Watch 2 builds upon its existing features by introducing an electronic sensor for continuous skin conductance monitoring and a skin temperature sensor. Additionally, it has replaced the previous optical heart rate sensor with a multi-path sensor, enabling more precise measurements in different physiological conditions. This allows the watch to provide users with more accurate data, including temperature, heart rate variability (HRV), and other metrics.

Enhanced by advanced AI algorithms, the Pixel Watch 2 can analyze users’ sleep quality, stress levels, activity duration, and calorie expenditure. This allows the watch to provide all-day body response tracking, stress notifications, and guided breathing exercises, offering a range of new features.

2. Google Struggles in the Smartwatch Market; Smart Wristbands Poised for Market Differentiation through AI

Google’s latest release, the Pixel Watch 2, follows a strategy similar to that of other major players like Samsung and Apple in the smartwatch market. It represents a modest upgrade with little change in external appearance, and hardware specifications closely align with existing products in the market. On the software front, besides the new stress management features, other additions such as security checks, emergency sharing, and fall detection closely resemble those of the previous generation.

The primary reason for this conservative approach lies in the challenging global economic conditions and a declining industry landscape. Google’s smartwatch products face relative weakness in the market, lacking the extensive user base and brand loyalty enjoyed by giants like Apple, Samsung, and Huawei. Google also lacks the niche market segmentation seen in players like Garmin. These factors collectively position Google in a cautious stance regarding the development of smartwatches.

While Google has displayed a bit of hesitation in the smartwatch sector, its recent introduction, the Fitbit Charge 6 smart band, has garnered significant attention. Although its price exceeds that of the Huawei Band 8 and Xiaomi 8 Active, released later in 2023, by several folds, the Charge 6 leverages Google’s resources and hardware-software upgrades to emphasize its value. For instance, it incorporates a new machine learning algorithm derived from the Pixel Watch, ensuring more accurate heart rate monitoring. This marks Google’s first smart band integrated with Google Apps, offering seamless integration with widely used applications such as Google Maps, Google Wallet, YouTube Music, and more.

Furthermore, Google has hinted at the development of generative AI features during the Made by Google event. These AI-driven features are anticipated to analyze fitness trends and provide insights through chatbots, with potential integration into smartwatches and smart bands. With these advancements, Google aims to elevate its smart bands’ reputation through AI applications, setting it apart in the market, even in comparison to competitors like Huawei and Xiaomi.