Luxottica Group SpA, which is the largest eyeglasses manufacturer in the world and also the owner of the popular Ray-Ban and Oakley eyewear brands, made an official statement, revealing it has been working in cooperation with Google Inc. since last year in order to help with Googles Glass eyewear design, development, tooling and engineering. The company also said it had reached an agreement for distribution of the new versions of Googles Glass device, which includes a tiny screen, camera and audio.
The Chief Executive Officer of Luxottica Group SpA – Mr. Andrea Guerra, said for the Wall Street Journal: “Google has opened up a new potential opportunity of use of glasses.” As reported by Bloomberg, Mr. Guerra also said in the companys statement: “We live in a world where technological innovation has dramatically changed the way in which we communicate and interact in everything that we do.”
The announcement of the partnership comes after the agreement between Google Inc. and VSP Global that was reached in January 2014. The deal included an agreement over prescription lenses, subsidized frames and training for optometrists.
On the other hand, Google bets on attracting new customers thanks to its collaboration with Luxottica. Mr. Astro Teller, who heads the innovation lab of the company – Google X and oversees the Glass project, explained how difficult it is to convince people to start wearing computers on their faces. He said: “This is a fashion problem as much as it is a technology problem.”
As reported by Bloomberg, in the statement Mr. Teller also commented on the deal between Google and Luxottica. He said: “Luxottica has built an impressive history over the last 50 years designing, manufacturing and distributing some of the most successful and well-known brands in eyewear today. We are thrilled to be partnering with them as we look to push Glass and the broader industry forward into the emerging smart eyewear market.”
Google Inc. fell by 2.12% on Monday to close the session at $1 157.93 per share, marking a one-year change of +43.02% and a market capitalization of $389.12 billion. According to CNN Money, the 41 analysts offering 12-month price forecasts for Google Inc. have a median target of $1 325.00, with a high estimate of $1 500.00 and a low estimate of $1 050.00. The median estimate represents a +14.43% increase from the last price of $1 157.93.
Luxottica Group SpA rose by 0.39% yesterday in Milan to settle at 38.96 euros, marking a one-year change of -1.81%. The company is valued at 18.61 billion euros. According to the Financial Times, the 20 analysts offering 12-month price targets for Luxottica Group SpA have a median target of 43.50 euros, with a high estimate of 48.00 euros and a low estimate of 35.00 euros. The median estimate represents a 11.65% increase from the last price of 38.96 euros.
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