Fitbit, a San Francisco-headquartered wearables maker and activity tracker, is being obtained by Google’s parent organization Alphabet, which is giving $7.35 per share for the corporation, worth it at around $2.1 billion. However, the question is, will the attainment be gainful for Google & Fitbit, and should Apple be wary of the agreement?
Apple that directs the smartwatch segment worldwide barely has something to mislay because of the deal — at the smallest amount in an instant say, professionals.
Navkendar Singh, Research Director, IDC India, informed IANS, “It is a little premature to say that this puts Google head-to-head with Apple in the wearables segment.”
Adding further, Prabhu Ram, Head, Industry Intelligence Group (IIG), CMR, “Google’s Fitbit acquisition does not put Apple in any threat over the short-term, given that Apple Watches are popular and the first choice for Apple loyalists.”
Nevertheless, there are scarcely any two views about the truth that the agreement provides Google a chance to offer its struggling hardware commerce a significant facelift. Google Pixel Mobile phones have unsuccessful in amaze Indian buyers. This year, the corporation didn’t bring in its Pixel 4 gadgets in India.
However, in the wearable group, Fitbit has performed well in India. Fitbit’s present smartwatch marketplace share in India is approximately 7%, while its smart band market share is about 4%.
Singh said, “Apple leads the smartwatch segment globally, but the scenario is different in India. Fitbit has done well in India with investments around marketing and channel.”
Adding further, he said, “It has a very loyal and active consumer base in India. To that extent this will help Google, with a ready set of consumers coming in Google’s fold and related data points around their usage and health indicators via Fitbit use.”
It is relevant to understand that Fitbit is the corporation that creates the Versa 2 smartwatch, as well as the Charge 3 band, which, fascinatingly, are supported both Google’s Android operating systems (OS) and Apple’s iOS; therefore, providing it a small edge over iOS.
As per James Park, CEO at Fitbit and Co-Founder, Google is an “ideal partner” to progresses its mission.
Park, in a statement, said, “With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone.”
“We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier and more active life,” he added.
From the perspective of Fitbit, it doesn’t have much headroom as a self-governing stage to grow and contend with top brands like Apple, or at the inferior spectrum with Chinese budget rivals, recommend industry experts.
Ram said, “For Fitbit, this acquisition comes at the right time.”
For Google, the acquisition of Fitbit provides it a toe into the growing wearable business in the country. The deal is largely seen as the development of Google’s Wear OS.
Ram noted, “The biggest takeaway from Fitbit acquisition by Google would be a better future for Wear OS.”
Currently, Fitbit is working on assembling the requirements of the budget-conscious Indian purchasers and is considering enlarging its offerings, chiefly for those who are only boarding on their fitness trip.
However, how Google incorporates the Fitbit brand into its crease is even an enormous concern as Google doesn’t have an excellent track record in engrossing a few of the acquisitions it prepared over the years, such as Nest, Motorola, etc.
Singh said, “Google would surely like to learn from the data of the Fitbit consumers and subsequently launch a few Fitbit devices on Wear OS, which is not doing very well for the past several quarters as compared to Fitbit OS and Apple Watch. It will be interesting to see how Google handles the integration from the brand, hardware, and consumer points of view.”
He added further and said, “India, being a value-conscious market, is very different from the other markets. Xiaomi is a leader here with basic wearables domination. Fitbit has been doing well for the past many years in the premium wearables space. It should keep on doing well for the next few quarters.”
The Google-Fitbit transaction is predicted to shut in 2020, matter to customary closing circumstances, including support by Fitbit’s stockholders & regulatory approvals.