Intel inside the luxury tag heuer android smartwatch Luxury swiss watch company tag heuer has recruited intel(Nasdaq:Intc)AndGoogle(Nasdaq:Googl)To help it compete with apple's(Nasdaq:Aapl)Upcoming $17, 000 smartwatch.The folks at tag heuer apparently did not like apple hiring away its sales director last year.Apple and intel have been allegedly getting closer recently with rumors that the next iphone models for 2016 would contain an intel lte modem. However, tag heuer is a subsidiary of the world's foremost purveyor of luxury goods, lvmh moet hennessy louis vuitton(Otcpk:Lvmuy).Krzanich is smart enough to see the huge potential of getting on the good side of lvmh.Apple, for all its expertise in selling high priced iphones is a newbie compared to lvmh's long reign as the world's king of luxury brands. ray ban outlet online I am also long on apple but looking at the chart below compels me to believe that lvmh is not the underdog when it comes to luxury smartwatches.Those who look down on intel as a trying hard supplier of x86 atom chips to chinese phone vendors, should be impressed by this tag heuer deal. (Click to enlarge)Lvmh sold its stake in hermes but still managed to post a +6% increase in 2014 revenue to 30.6 billion euros($33.9 billion in today's rates).On paper, lvmh is a far more experienced vendor of luxury watches.Intel's expertise will now help tag heuer come up with a smartwatch that could compete with the apple watch edition. Intel inside luxury brandsunlike microsoft(Nasdaq:Msft)Which opted to use an arm v4 chip inside its smart band fitness tracker, the overlords at lvmh hired intel to help it create the first tag heuer luxury android wear watch.Lvmh will unveil the tag heuer smartwatch this coming thursday. The reuters article said the intel powered tag heuer smartwatch will have the same features as the apple watch.It will be a digital version of the tag heuer carrera sports watch line up.While some people are already impressed with the audacity of apple to sell a $17, 000 smartwatch, some people are actually selling second hand ordinary(Not smart)Tag heuer watches for $26, 000 or higher. (Click to enlarge)The tag heuer deal will definitely boost intel's internet of things strategy.Unlike smartphones and tablets, luxury smartwatches will not require contra revenue.The very high operating margin on a tag heuer android smart watch means intel could easily charge $25 to $50/unit for a souped up version of its intel curie wearable computing chip. Google's android wear os business is now intel friendly.I am not really sure if tag heuer will use an x86 quark processor that the intel curie has.Intel bought the firm behind the basis fitness watch product last year.Tag heuer might integrate the technology of the $199 basis peak smartwatch inside carrera products. (Click to enlarge) Source:Basis science Android wear os ensures that the tag heuer smart watch will be compatible with the many different version of android os inside people's phones.The basis peak watch used a proprietary os and had trouble integrating with some android phones. Conclusionintel is getting inside a luxury smartwatch made by a company with a proven track record of selling very cheap ray bans uk expensive wristwatches.Tag heuer is just one of the many expensive brands that lvmh owns.Unlike samsung(Otc:Ssnlf), and Microsoft, Intel is now set to benefit from the moneybags privilege of luxury goods. Samsung is the no.1 player in smartwatches in 2014 but I do not think it will release a luxury Gear Android Wear watch. Volume wise, tag heuer's smartwatch is unlikely to match the numbers of samsung's gear products.Apple's entry level smartwatches will face pressure from samsung and other oems who sells sub $200 watches, and lvmh will pressure the luxury apple watch edition. The smart money now is on intc and lvmh because some of the 149 million smartwatches in 2018 will definitely feature intel technology and products.Ccs insight predicts that 340 million wearable devices will be in used by 2018, 44% of them watches.Other oems like microsoft may also get inspired by the tag heuer deal and hire intel to create luxury smartwatches or fitness bands for them. The implication of this tag heuer deal is also more than just about watches.Lvmh sells billions of dollars' worth of male and female clothing and accessories.The intel curie is perfect addition to any $2, 000 louis vuitton bag.Not for human fitness tracking but as an anti theft measure. Expensive designer bags and clothing are favorite targets of thieves.The 32 bit 400 mhz pentium class intel quark se processor inside the tiny curie is powerful enough to handle bluetooth, gps, truekey, and voice recognition software for identification. The intel curie hardware and basis science technology are also perfect combo for high couture clothing.Eyewear brand oakley has already signed up to test curie.Luxottica, who owns the oakley and ray ban brands struck a deal with intel to develop smart eyewear products last year.The high fashion status of lvmh might be powerful enough to sell 10x more expensive fitness bands than the $495 intel powered mica smart bracelet. Investors who want to ride the coming boom in smart devices ought to consider adding intc to their portfolio.The elitist people who buy $34, 000 swiss watches are likely to prefer an lvmh(Tag heuer, hugot, bulgari)Brand over the ordinary sounding $17, 000 apple watch edition. Eleven other highly paid professional analysts at tipranks agree with my bullish outlook for intel.The monthly or long term technical indicators are also favorable for intc.

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