Alphabet Inc. (NASDAQ: GOOGL) showcased its competitive strength at the Google I/O 2022 on Wednesday by launching its first-ever smartwatch, Pixel Watch.
Interestingly, Pixel Watch will be equipped with Wear OS and capabilities like heart rate and sleep tracking. Further, the watch will allow users to control all smart devices at home.
Pixel Watch will be commercially available starting the fall of this year.
With this launch, Alphabet has entered the wearable products section of the consumer electronics market. According to a report by Statista, smartwatches accounted for nearly 30.5% of the wearable products market in 2021.
The entry of Alphabet into the smartwatch arena may impact Apple (NASDAQ: AAPL), which dominates this space with its Apple Watch.
Shares of Apple declined 5.2% on Wednesday while shedding an additional 1.4% at the time of writing, in the pre-market trading session on Thursday.
Wall Street’s Take
Three days ago, Brain White of Monness reiterated a Buy rating on Alphabet with a price target of $3,500 (54.05% upside potential).
Overall, the Street is unanimously optimistic about the growth prospects of Alphabet and has a Strong Buy consensus rating based on 30 Buys. GOOGL’s price forecast of $3,270.47 suggests an upside of 43.94% from current levels.
Over the past year, shares of Alphabet have increased 3.3%.
Per the TipRanks’ Bloggers tool, 95% of the financial bloggers have a Bullish stance on GOOGL versus the sector average of 68%.
Entry into the smartwatch category can unleash solid growth opportunities for Alphabet. Meanwhile, competition from a player like Alphabet could mean loss of business and erosion of profits for Apple.
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