Google’s parent company Alphabet is all set to acquire a San Francisco based activity tracker and wearable maker Fitbit in an all-cash deal of about $2.1billion.Fitbit helps its users to track his all-day activity, heart rate, steps walked, quality of sleep, and other metrics involved in measuring fitness. In fitness-focused wearables, Google in January bought unknown smartwatch technology from fossil at $40 million. The smart wearable has been a missing mystery for Google.
Fitbit is unable to upgrade itself from smart band maker to smartwatch maker as the company is feeling the heat to compete with Samsung and Apple. Fitbit has over 30 million active users across the globe. Fitbit has been losing it’s steam as it stands at fourth place in a market-led by Chinese giant Xiaomi, followed by Apple and Huawei. Acquisition of Fitbit will foray google into smart wearables and digital health segment, which is dominated by Apple, which is the leader of the market. Wristwatch, like health and fitness tracker, is in huge demand across all age groups. It has become a pop-culture accessory that displays messages and notifications. Fitbit also offers a dedicated networking website where it’s users can challenge themselves and compete against each other. The social element adds a tinge of motivation for users to take an average of 800 or more steps daily. Users can daily share their daily progress reports. The health landscape has been a huge buzz this year as Amazon recently bought PillPack. Google’s acquisition of Fitbit will make its entry into healthcare play. Google’s ability to decipher millions of data daily will be path-breaking in steering personalized health recommendations. Fitbit hardware and google software, AI cutting edge technology, will offer an alternative to Apple’s smartwatches.
Google has a poor track record of hardware acquisition and product roadmap from the to nest to Motorola. Though Google has not done too well in the hardware segment, they have done an excellent job in services. Experts feel that Fitbit’s acquisition could be different. It will open to a $3 trillion health care sector. Europe’s antitrust chief fears fitness data is a private matter, and google’s involvement elevates privacy concerns in the minds of users. The company has clarified that Fitbit health and wellness data will not be utilized for Google ads.