Swiss watch makers are caught in a pinch. Apple’s platform is closed but reaches their target. Android Wear is open, and now compatible with iOS, but does not offer the differential privacy of Apple’s platform. The talk explores this predicament and offers a solution. This talk was given at Digital Winter Fest 3.0 in December of 2016.

1. Holiday Soiree for
Fashion, Technology,
Virtual & Augmented Reality
Saving Switzerland
from Smartwatches
Galvanize / San Francisco | Tues, Dec 13, 2016
by Christopher Grayson
Digital Winter Fest 3.0

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PAGE
You only get two
The Iron Triangle of Project Management
Low-Cost
Quality
Work
Timely
Delivery

3. 3
PAGE
I believe there is a
similar mechanism at play
with Mobile And
Wearable platforms.
You only get two

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Low-Cost
Privacy Convenience Privacy
You only get two
The Iron Triangle of Mobile Platforms

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Low-Cost, Privacy, Convenience — you only get two.
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Mobile Platforms
DIY

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PAGE
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Tight spot
Smart Watches
threaten the
high-margin
Swiss Watch
industry.
They want to compete in this
space, but lack their own platform.
Low-Cost, Privacy, Convenience — you only get two.
Mobile Platforms

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PAGE
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost, Privacy, Convenience — you only get two.
Mobile Platforms
Fine watches don’t want to be here,
but Android Wear IS open
to third-party watch makers.
This is not where their customers
are. As we shall see, Apple owns
the high end of the market.

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Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost, Privacy, Convenience — you only get two.
Mobile Platforms
Fine watches want to be here
but iOS / Apple Watch
are NOT open to
third-party watch makers.

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Privacy
is a
luxury good

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Differential
Privacy
https://www.wired.com/2016/06/apples-differential-privacy-collecting-data/
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Differential Privacy is the
statistical science of trying
to learn as much as possible
about a group while learning
as little as possible about
any individual in it.

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Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Differential
Privacy
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Low-Cost
Privacy Convenience
Differential
Privacy
allows Apple
to distinguish
itself from Google
whose business
model is built
on tracking users
and data-mining
their behavior
for advertisers.

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https://openeffect.ca/reports/Every_Step_You_Fake.pdf
Academics Concur
The Apple Watch is the most private, data secure wearable.
by Open Effect, a not-for-profit research group,
with significant contributions from the Citizen Lab at the Munk School of Global Affairs, University of Toronto.

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100%
80%
60%
40%
20%
0%
Low-End
$0-$200
Mid-Range
$200-$400
High-End
$400+
Low-End
$0-$200
Mid-Range
$200-$400
High-End
$400+
Apple owns
the top of the market
Worldwide Smartphone OS Share by Price Tier
source

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source
All other non-Apple smartphone’s
combined
Apple owns
all the profits
100%
80%
60%
40%
20%
0%
92%8%
92% of the Total Operating Income for Worldwide Smartphone Sales

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PAGE
source
35%
30%
25%
20%
15%
10%
5%
0%
20.2% 29.3%
Apple’s Margins
compared to lvmh
Apple captures 9.1% higher margins than LVMH

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19March,
2015
TAG announces
Android Wear watch
(Then, for Android only.)

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10August,
2015
Google announces Alphabet
Google also needs to open up Android-Wear
to be interoperable with iOS, something
they would never do as “Google.” If it is truly
run as its own business unit, they should
immediately realize it is the business move
they must make.
— Christopher Grayson
https://www.facebook.com/shel.israel/posts/10153459416670726?comment_id=10153459485060726

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31August,
2015
21DaysLater
Google / Alphabet
announce
Android Wear to be
interoperable with iOS

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9November,
Android Wear’s interoperability with iOS
was the difference between success and failure
for the TAG Connected watch.

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But That is Still
an Ad Hoc Solution.

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this problem remains
Low-Cost
Privacy Convenience Privacy
Their version of
“Differential Privacy”

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There is
a Solution

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2.0
PRESENTERS NOTES:
Hunch was like Swarm, but instead of checking into places, you checked into media: movies, books, TV shows, magazines, etc. It built a model of
who you were, compared your behavior to others, and made recommendations: “If you like this book, you should check out this movie, if you liked
that movie, try this TV show, and people that watched that TV show, also read this magazine, etc.”
Founded by Chris Dixon & Caterina Fake, Hunch was eventually acquired by eBay for a reported $80M. eBay had a recommendation engine,
Hunch built a better one. Christina Mercando was Hunch’s Product Manager. After the integration, once the golden-handcuffs were released, Dixon
joined A16Z as their man in NYC and Christina founded Ringly. About half the early Ringly team were former Hunch employees: a stable full of data
scientists — in order to send your alerts (not all, just your important ones) they must filter through Ringly mobile app where, like Hunch, Ringly can
build a profile of what you do, where, when and in what context …

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Christina Mercando d’Avignon
Founder & CEO
Logan Munro
Founder & CTO
If this team …

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Can convince this team …
Bernard Arnault
CEO / Chairman, LVMH
Net worth: $38B
Wealthiest Frenchman
Jean Claude Biver
President of Fine Jewelry & Watches, LVMH
CEO, TAG Heuer
Chairman, Hublot
Ian Rogers
Chief Digital Officer, LVMH
Former Head of Music, Apple
Former CEO, Beats

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That the software behind
This app …

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Can solve this problem …
Low-Cost
Privacy Convenience Privacy

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That’s a
Solution

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TAG Heuer / LVMH Should acquire RINGLY, to use their software
as the foundation of a differential privacy platform.
ConClusion
Differential Privacy

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Addendum

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Wearables startups may be leaving money on the table / missing
exit opportunities — Google and Apple don’t need their product —
However, the industries they are disrupting do: fashion, accessories,
jewelry, watch and luxury goods conglomerates.
The highest profile
wearables exit to date
was Misfit. They were not
acquired by a tech giant
but by watch and fashion
accessories label, Fossil
,
. While tech founders may dominate
the billionaire league here in the Silicon Valley, in the old world,
fashion, apparel, and luxury goods leaders dominate.
Addendum

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Luxury goods, fashion, and apparel industry leaders like …
Addendum
Net Worth
$6.5 B
Richemont is based
in Switzerland
Johnann’s
permanent
residence is
South Africa Johann Rupert
Chairman of Richemont
Net Worth
$34 B
wealthiest
frenchman
Bernard Arnault
Chairman & CEO of LVMH
Net Worth
$19.6 B
wealthiest
Swede
Stefan Persson
Chairman of H&M
Net Worth
$11.5 B
3rd wealthiest
frenchman
François-Henri Pinault
Chairman & CEO of Kerring
Net Worth
$18.7 B
wealthiest
Italian
Leonardo Del Vecchio
Founder of Luxotica
Net Worth
$60 B
wealthiest
Spaniard
Amancio Ortega
Chairman of Inditex (owner of Zara)
The wealthiest person in France
is a woman, Liliane Bettencourt,
heiress to the L’Oréal family
fortune, and worth $36.1B.
* *
*

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Addendum
Holdings include:
Prada
Miu Miu
Church’s
Car Shoe
Marchesi 1824
Sample Holdings
include:
Mont Blanc
Cartier
Chloé
Van Cleef & Arpels
Piaget
Dunhill
Sample Holdings
include:
Calvin Klein
Tommy Hilfiger
Geoffrey Beene
Kenneth Cole
Sean John
Michael Kors
Joseph Abboud
Sample Holdings include:
Louis Vuitton Fendi
Marc Jacobs Donna Karen
De Beers Sephora
Bulgari Moët & Chandon
Givenchy TAG Heuer
Dom Perignon Hennessy
Sample Holdings
include:
Breguet
Blancpain
Omega
Tissot
Swatch
Sample Holdings
include:
Saint Laurent
Sergio Rossi
Gucci
Balenciaga
Alexander McQueen
Major Fashion & Luxury Goods Conglomerates

35. Saving Switzerland
from Smartwatches
by Christopher Grayson
Digital Winter Fest 3.0
Thank you &
Happy Holidays
This talk was give on Tuesday, December 13, 2016 at Galvanize in San Francisco.