Smart watch

Facebook is developing a smartwatch, reportedly to be able to be used as a standalone talking device and will initially come with Google's Android OS.

Facebook (FB) is in the process of developing a smartwatch that will be a competitor to the Apple Watch, Google-owned Fitbit, Huawei and others, The Information reported.

According to reports, the smartwatch from Facebook will have a built-in cellular connection that will allow it to be used as a standalone talking device. The initial version will have an Android OS, but the report says Facebook wants to release its own operating system. In addition to a suite of apps: Facebook, Instagram, Messenger and WhatsApp, the watch could have integration with health and fitness-focused services such as Peloton (PTON).

In 2019, Facebook's plans to create smart glasses in partnership with Luxottica were voiced by various sources. While there is no confirmation of this, the source may be that one of Facebook's corporate teams is indeed working on a wearable device.

While smart device sales are a revenue opportunity for Facebook, so far the company has not had much success in this business Oculus and Portal do not bring in a significant share of Facebook's overall revenues. However, Portal video calling devices have seen increased demand during the coronavirus pandemic. Facebook's smartwatch could become more popular as it is one of the most popular gadgets among consumers around the world.

For the Facebook smartwatch to gain popularity, the company will have to make a huge effort as this market is dominated by the Apple Watch, whose sales even professional manufacturers of different smartwatches cannot compete with. In addition, Facebook faces the distrust of many users in how it uses their data. Facebook, for example, has criticised Apple for making the iOS operating system updates available to users to disable targeted ads in apps. Facebook called it a risk to its future revenue and Apple one of its biggest competitors. Nevertheless, Facebook's huge profits give it an opportunity to invest in new types of products that, in theory, could become new sources of revenue and profit.