Google’s parent company Alphabet Inc. has recently offered to buy the American wearable device maker company Fitbit. With its latest move, Alphabet intends to enter the market for tech wearables including smartwatches and fitness trackers.
Google eyes to enter wearable tech
Google has already ventured into the smartphone manufacturing industry with its Pixel smartphones to join other tech giants like Samsung and Apple. But, it is yet to offer something significant to the users in the segment of wearable technology.
Its presence in the industry of tech wearables has been limited to the ‘Wear OS’ operating system. Although Wear OS has been around for some years now, it has failed to leave an impact.
Uncertainty over the possible deal
Several media reports citing inside sources have surfaced online but neither of the companies has given any official confirmation. Moreover, the actual price that Alphabet Inc. has offered to acquire Fitbit hasn’t been revealed either.
Despite no confirmations from the company officials, the share market has responded positively to the news. Shares of Alphabet and Fitbit have risen by 2 percent and 27 percent respectively immediately after the news surfaced online. But, no reaction from the companies is hinting at the uncertainty of the despite ongoing negotiations.
Besides allowing Google to enter the market for wearable tech gadgets, the possible deal will also benefit the popular fitness tracker manufacturing firm. Fitbit has also been facing tough competition from its Chinese rivals who are offering much more affordable fitness trackers.
Consumers are also becoming more concerned about their health and fitness trackers are becoming more and more popular. Thus, Fitbit has consistently focussed on fitness and has also done quite well in that segment.
But, Fitbit has somewhat failed to impress users with its smartwatches. Media reports had also alleged last month that the company was also exploring possibilities of sale. However, Apple’s smartwatch product lineup, in the meantime has continued to lead in terms of market share.
But, if the two companies can strike a deal, users will be hoping for more choice in terms of exciting wearable gadgets in the future. The latest update is also expected to enable Fitbit to increase its market share (especially in China) against its aggressive competitors including Xiaomi and Huawei.