Google reportedly eyeing global wearable tech manufacturer Fitbit

Wearable technology and its applications have grown by leaps and bounds in recent years and the competition is heating up with every passing year. Apple, Samsung, Xiaomi, Fitbit and Huawei are some of the prominent names associated with commercially available wireless wearable devices being used worldwide.

Alphabet Inc., the parent company of Google, is reportedly in talks for acquiring San Francisco-based Fitbit, which is a well-known brand of activity trackers. Sources confirm that Google has extended a formal offer to the wearable device manufacturer, although if a deal would be reached or not will have to be seen.

Fitbit has been facing substantial competition from Apple Watch, which come with built-in fitness tracking features. As such, being acquired by Alphabet could deliver additional value to Fitbit and bolster its competitiveness. The exact value of the offer by Google was yet to be learned.

Rumors have even indicated that Google has been working on a Pixel Watch itself, which can peg the technology giant against Fitbit in the near future. Merging with Google might considerably expand the reach and capabilities of Fitbit across the fitness devices space.

The industry for low-cost wearables has also gained major traction, especially in developing nations like India, as technology companies like Xiaomi and Lenovo look to penetrate the low-income consumer base. Fitbit’s products are usually considered to be slightly on the premium side, although the company has built a substantial customer following.

Also Read: Wearable AI and its rising penetration in healthcare industry

Recently, Fitbit and the Singapore government had unveiled a partnership under which the tech device company will provide free fitness trackers for the nation’s public health program. Users will receive a Fitbit Inspire band and would have to pay $10 per month for the premium coaching service of Fitbit.

The move apparently suggests the company’s plans to build a persistent revenue source from subscription-based models. While announcing the deal, it was confirmed that Fitbit had beaten Apple and other rivals for the bid. Such a development can be expected to significantly impact the annual sales projections of the company.

Post the announcement of Google’s intentions to acquire Fitbit, U.K.’s Tom Watson has asked the Competition and Markets Authority (CMA) to pause any deal, pending a complete investigation into possible anti-competitive effects.

 

Source Credits: https://www.forbes.com/sites/johanmoreno/2019/10/28/google-makes-offer-to-acquire-fitbit/#6f4ec7194061