Alphabet, the parent company of Google, acquired activity tracker Fitbit for $2.1 billion. This acquisition created ripples with experts asking whether this acquisition would be profitable for Google and Fitbit and is it worrisome for Apple. Currently, Apple leads the smartwatch segment and saying that this acquisition brings Google head-to-head with it in the wearables segment is a little premature. But, this will help Google to give a major thrust to its struggling hardware business. Google’s Pixel series failed to woo Indians and the company because of which the company didn’t launch its Pixel 4 in the country.
However, Fitbit is popular in India having captured a 7 percent market share in the smartwatch segment with its Versa 2 smartwatch and with its Charge 3 band, got a 4% market share in smart band segment.
The IDC India, Research Director, Navkendar 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. 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”
Both the Fitbit products are compatible with iOS and Android operating systems, which give it an edge over Apple watch as a large number of users in India operate on the Android platform.
Fitbit is happy with the deal and its Co-founder and CEO, James Park 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.”
It is believed that the deal came to Fitbit at the right time as the company didn’t have many resources to compete with giants like Apple on its own. It is now working to expand its offerings and align with the needs of the budget-conscious Indians. Google is also looking to release its own wearable device with the help of Fitbit’s deal. The deal between Google-Fitbit will close by 2020 as it requires Fitbit’s stockholders and regulatory approvals.