(FROM THE WALL STREET JOURNAL 3/20/15)
Google, TAG Heuer
Plan Smartwatch
Google Inc., Intel Corp and TAG Heuer S.A. will collaborate on a
Swiss smartwatch in the latest entry of technology giants into the
world of luxury fashion.
The watch, expected to hit the market this year, will use Intel
and Android Wear technology.
"Swiss watchmaking and Silicon Valley is a marriage of
technological innovation with watchmaking credibility," said TAG
Heuer Chief Executive Jean-Claude Biver.
Earlier this month Apple Inc. entered the world of high-end
fashion with the launch of its hotly anticipated smartwatch, which
costs $17,000 for the priciest version. The Apple Watch had begun
to worry many Swiss watchmakers, as well as technology competitors
hoping to keep up. The lowest-priced models start at about $350 and
are seen eating into sales of the most affordable Swiss
watches.
Already, Frederique Constant SA and Mondaine Watch Ltd. have
unveiled smartwatches to blunt Apple's advance into fashion, which
it announced with an advertising insert in Vogue.
For Intel and Google, the smartwatch collaboration is the latest
in their forays into smart fashion. In December, Intel said it
would collaborate with Luxottica Group SpA to produce smart
eyewear. Luxottica had said that it would partner with Google to
create new designs of Google Glass.
-- Angela Chen
'Angry Birds'
Slump Continues
"Angry Birds" maker Rovio Entertainment Ltd. said Thursday its
operating profit fell sharply in 2014 as a small rise in
mobile-games revenue failed to compensate for a big decline in
tie-in merchandise and licensing sales.
Last year Rovio's revenue fell 8.8% to 158.3 million euros
($170.5 million), from 173.5 million euros in 2013, while operating
profit dropped to 10 million euros from 36.5 million euros the
previous year, the company said.
In response to flagging sales, Rovio cut 110 jobs, or about 14%
of its workforce, late last year. Also, longtime Chief Executive
Mikael Hed stepped down. He was succeeded by Pekka Rantala, who had
previously worked at Nokia Corp.
Rovio's troubles stem from its failure to adapt successfully to
the free-to-play business model that has now become the industry
standard in mobile games.
Rovio has worked to revitalize its games business by launching
new free-to-play titles at a steady pace. In 2014, its games
revenue rose to 110.7 million euros from 95.2 million euros in the
previous year.
Rovio has also expanded from games to other lines of business.
But in 2014 the sales of Angry Birds merchandise took a nose dive,
and Rovio's revenue from consumer products dropped 43% to 41.4
million euros.
-- Juhana Rossi
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