Apple iWatch or Google Glass

With both the Consumer Electronics Show (CES) and Mobile World

Congress behind us, in the coming weeks and months some of the announced devices will start to hit the shelves. Reception thus far forResearch in Motion-Blackberry’s(BBRY) new Z10 device is mixed and has people questioning what may or may not be next for the company. I have yet to use one so I will hold my opinion on the BB10 OS, but as we have seen before a company cannot make its way on one device. Rather it needs a portfolio of devices and that could be a mix of smartphones, tablets, and others.

Samsung also announced its Galaxy S4, which should be arriving at T-Mobile in early May and before too long at AT&T (T) and Verizon Wireless (VZ). Much like Apple’s (AAPL) iPhone 5 the early reviews suggest the S4 is a nice step forward in terms of hardware, but hardly a break through device chock full of new must-haves. It would seem that after much smartphone innovation in the last few years — touch screen, swipe, apps, and so on — that we are in a new feature lull near term. I do think that this will eventually pass and it could be mobile payments going prime time, fingerprint and biometric identification/security, or something yet to be identified that breaks the log jam free.

Another possibility would be a radically new hardware design and there are a few of them out there.There has been no shortage of Internet chatter over a potential watch design from Apple dubbed the iWatch. Samsung has has confirmed that it isworking on a smartwatch and the Pebble smartwatch is already in the market place. Unlike any potential iWatch or Samsung Smartwatch, the Pebble pairs with any Android and iOS devices running version 2.3 Gingerbread or iOS 5 and above via Bluetooth to to display notifications, manage apps and more.

The other new hardware design that is getting attention is glasses and for this we can thankGoogle (GOOG) and Google Glass. Now Google Glass differs somewhat from a smartphone in that it’s a new attempt to make wearable computing mainstream. I say new attempt because over the years there has been no shortage of companies that I have sought to bring a microdisplay infused set of goggles-glasses to market. Colorado MicroDisplay, Brillian, Three-Five Systems and others that have long since passed were toiling on such designs as far back as 10 years ago.

The notion at the time was to have a full, wearable computer screen that could be used for entertainment, gaming and even  work applications. More recently, Kopin Corp. (KOPN) has developed its Golden-i offering, which is a center piece in the company’s wearable computing initiative. Based on Golden-i, Motorola Solutions(MSI) is producing its HC1 modular head mounted computer that offers connectivity and support to industries like defense, utilities, telecommunications, aerospace, and aviation industries that are fieldwork heavy.

We can add Sony (SNE) to the mix given a recent patent filing that describes an eyeglass-mounted computer system that displays data on both lenses.  Sony is no stranger to head mounted devices and counts several virtual reality headsets among its vast product catalog.

Maybe it’s just me, but while I can see uses for Motorola’s HC1 in fieldwork applications I have a harder time envisioning people wearing and using Google Glass as they walk down the Street, but I could be wrong. I still find it funny when I see people walking down the street and it looks like they are talking to themselves…even thought they are on a headset.

Despite my skepticism, these new wearable devices are already raising questions. Case in point, the West Virginia legislature has introduced an amendment to an existing bill to establish “the offense of operating a motor vehicle using a wearable computer with a head-mounted display.” It seems I’m not the only one that sees these potential devices as taking the whole texting while driving concern to a whole new level. I’m sure someone will make the argument about looking at your smartwatch while your driving as well.

If I had to choose between the smartwatch or the glasses/goggle-like form factor, I’d opt for the smartwatch. It replaces an accessory that many already wear today, so there is no new behavior to be learned. Second, there are a number of other devices out there, like Nike’s (NKE) Fuelband, that could make for a great transitional product to a smartwatch. Better yet, how about a smartwatch with Fuelband inside. Now that’s a product that I’d like to have.

From an investor perspective, if I had to look for a way to play this potential product category it would be through the supply chain. In other words, “buy the bullets, not the guns.”