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.

According to a report from TechNews, Micro LED technology boasts superior qualities such as higher transparency, richer color saturation, increased brightness, enhanced efficiency, and lower power consumption. It also extends product lifespans, making it an optimal choice for automotive displays. However, it currently grapples with challenges related to cost, mass transfer, extensive inspections, and red light efficiency, posing obstacles to large-scale production.

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According to the news from Taiwan tech media, TechNews, in a groundbreaking move, Samsung has unveiled its inaugural 110-inch Micro LED television, signaling a significant foray into the premium TV segment. Not to be outdone, competitor LG Display (LGD) is reportedly poised to make its own mark by launching a 136-inch Micro LED smart display next year, with initial applications targeted at theaters, indoor conference rooms, and other similar venues.

According to insider sources, LGD is gearing up for mass production of its impressive 136-inch Micro LED display, expected to commence around July of the upcoming year. The initial production goal is set at over 100 units, with deployment primarily earmarked for theaters, indoor conference facilities, and possibly large-scale corporate headquarters.

Notably, LGD’s ambitious 136-inch smart display project is a collaborative effort with Micro LED from Unikorn Semiconductor, which is a subsidiary under Ennostar. Unikorn emphasized the paramount significance of this partnership, affirming substantial breakthroughs in both quality and yield through their joint endeavors. By elaborating during a recent press conference, underlining the imminent production review phase scheduled for the third and fourth quarters – a pivotal juncture that could potentially elevate Micro LED’s contribution to Unikorn’s revenue to a significant proportion. Interestingly, this timeline harmonizes with LGD’s projected rollout of their Micro LED smart display.

But, Ennostar has no comment regarding this development, refraining from disclosing any customer-related particulars.

LGD is currently making assertive strides in the fiercely competitive Micro LED technology landscape. Notably, LGD recently acquired a set of 14 U.S. patents related to Micro LED technology from Taiwanese firm Ultra Display Technology, according to reports from, The Elec, a South Korean media outlet. These patents encompass crucial transfer processes, underscoring LGD’s strategic approach.

Furthermore, whispers from the industry suggest that Apple’s extensive Micro LED transfer process for the Apple Watch could see a significant handover to LGD. This would entail LGD overseeing an integrated workflow, encompassing chip manufacturing, backplane assembly, and transfer processes, while Apple retains responsibility for device design and pivotal technical support. The anticipated mass production timeline for the Micro LED-equipped Apple Watch has been deferred to the first quarter of 2026, a delay likely attributed to the recalibration of the production supply chain.

(Photo credit: LGD)

According to research conducted by TrendForce, the much-anticipated Micro LED version of the Apple Watch is facing yet another delay and is now expected to be launched in the first quarter of 2026. The primary reason behind this delay is believed to be the need for reconfiguring the production supply chain.

Previously, industry speculations suggested that Apple would take charge of the core production process, particularly the massive transfer of Micro LED technology. However, recent industry research by TrendForce indicate that LG Display (LGD) might now take over this crucial aspect of the production process.

The critical process involved in the production of the Micro LED version of the Apple Watch, especially the massive transfer of Micro LED technology, has been a point of interest in the industry. It was widely speculated that Apple would handle this key engineering either at its Cupertino headquarters in the United States or potentially transfer the production to its facility in Longtan, Taiwan, for the essential massive transfer of the technology.

TrendForce understands that Apple’s decision to undertake the crucial engineering process in either the United States or Taiwan reflects their intent to have complete control over the core manufacturing process during the initial production phase. However, this approach also introduces complexities in terms of logistics and supply chain management, as the chips are set to be manufactured in Malaysia, the backplates in South Korea, and the final assembly by system integrators in China or Vietnam.

As a result, recent industry research by TrendForce indicate that Apple has finalized LGD as its primary collaborator for Micro LED production. This means that LGD will now be responsible for the critical massive transfer process. In addition to providing its own equipment and technical support, Apple is also expected to invest in LGD’s related equipment procurement to ensure a smooth transition and expedited progress in the Micro LED production pipeline.

For more information and details about the Micro LED industry, TrendForce will hold the “2023 LED Forum” on September 5th (Tuesday) from 9:30 am to 5:00 pm at the NTUH International Convention Center. The seminar has invited TrendForce’s Senior Research Vice President, Eric Chiou, as well as representatives from various industries such as Mojo Vision, ITRI, Lumus, Unikorn, Porotech, Nitride Semiconductor, Tohoku University, Coherent, InZiv, AUO, and Tianma to share the progress and related applications of Micro LED technology.

considering factors such as pricing and the absence of certain essential features, TrendForce anticipates a modest shipment volume of approximately 200,000 units for Apple Vision Pro in 2024. The market’s response will heavily depend on the subsequent introduction of consumer-oriented Apple Vision models and the ability of Apple to offer enticing everyday functionalities that will drive the rapid growth of the AR market as a whole.

VR/AR shipments are expected to drop to 7.45 million in 2023

In the meantime, TrendForce forecasts a global downturn in AR and VR device shipments for 2023, predicting a shipment total of roughly 7.45 million units—an 18.2% YoY decrease. VR devices are expected to shoulder the majority of this decline, with projected shipments hovering around 6.67 million units.

Conversely, shipments of AR devices are expected to remain stable, with projected shipments exceeding 780,000 units. While Apple’s latest offerings could stimulate some demand, the high price tags attached to these units continue to pose a significant barrier to broader market growth.

TrendForce posits that the trajectory of the VR and AR device market may encounter certain limitations between 2023 and 2025. While affordable VR devices could pique the interest of mainstream consumers, the prospect of minimal profitability might dissuade manufacturers from substantial investment in the VR market in the immediate future. A shift towards AR devices and their corresponding applications seems more probable.

Nevertheless, the expansion of the AR device market hinges on a broader acceptance of consumer applications. Therefore, TrendForce anticipates that a significant rise in the VR and AR market, potentially nearing a 40% annual increase in shipments, might not be realized until 2025.