The One Thing Google's Smartwatch Needs To Succeed

Google GOOG GOOGL is expected to show off the Moto 360 smartwatch at its developer conference this week, but is this a product consumers really want?

"It has to be feature-packed in order for people to adopt [it]," B. Riley analyst Sameet Sinha told Benzinga.

Sinha said that he knows many people who have stopped wearing watches altogether. He attributes this to the increase in smartphone use. To persuade consumers to wear a smartwatch, the device must go above and beyond a device that can simply tell time or send notifications to the user's wrist.

For example, Sinha theorized that a smartwatch could act as a remote control for other devices, such as a smartphone. Smartwatch makers have already experimented with this concept, but the results have been mixed.

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Sinha also said that Google's smartwatch could appeal to those who like to accessorize and customize. But he doesn't expect this device or any other smartwatch to be wildly successful in the near-term.

"There will be early adopters who will buy it and eventually it will grow," said Sinha. "But…most of the revenue is probably coming a couple years down the line, as opposed to the first version [available]."

Apple And Beats

Many tech reporters have theorized that Apple AAPL acquired Beats Electronics to sell the iWatch.

Beats famously convinced music lovers to spend $300 on colorful headphones. Who knows what the company could do for a watch?

While this is an interesting theory, Sinha doubts that Apple would acquire Beats for this reason.

"Apple is the master of design," Sinha explained. "Beats is good from a design perspective, from a stylistic perspective. But time and time again, Apple has proven that consumers like simplicity, ease of use, in the product design."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.