Google is on the roll again, this time it confirmed that they will be acquiring Fitbit for $2.1 billion and it will be directly under Google.
Fitbit is one of the pioneers of wearable fitness tracking technology like smart bracelets and smart watches. Starting around 2014, making big waves by 2016 and their revenue starting to decline from 2017 to date.
However, almost all major smartphone or technology companies such as Samsung, Huawei, Apple, Nokia, Sony, Xiaomi, Tecno, etc all have a wearable device or lines of different wearable devices including Google itself.
So, almost everyone is wondering why Google is acquiring Fitbit.
Because, by themselves they could as well have created something similar, but you see, it is far more complicated than that. Google has been trying to venture into hardware for a long time now and that in itself has a lot of symbolism about what the future holds. We will get to that in a minute.
Fitbit is not just any fitness or wearable devices company, they are among the pioneers in the field and they have been doing fairly well, all factors considered. They have a wealth of experience and tons of working hardware.
There is also the thought that they have a secret formula or something to offer that Google doesn’t, thus inspiring the purchase. The same way Google bought their current Smart Home startup/division, Nest.
Google’s own attempt at creating hardware usually fails miserably (looking at you Chromebook), with obviously the subtle exception of their Pixel phone. Google has Wear OS which is also somewhat struggling to stay relevant yet the Fitbit just works.
Honestly, I think the Fitbit will pair well with Google’s Fit android health app and will also allow it to better get into the now large health aware global population. That is after all what was the selling pitch for Apple’s Watch.
These devices allow you to track your calories, workout plan, walking, exercises, sleeping pattern, heart rate and can even warn you when you are most likely about to face a major health issue such as a heart attack or high blood pressure.
When you combine Fitbit’s health and fitness tracking experience and Google’s software acumen as well as large resource pool, these two could create something much more phenomenal.
This is why Google is buying Fitbit and lots of other hardware companies or components!
The company foresees that tech is going to become (if it hasn’t already) a necessity and regular component of your life. As such it will move beyond only the software and phone or PC screens into your utilities and appliances.
You will need to be more connected to your car, fridge, lights, security system, shoes, shopping experiences, chairs and so many other things. Catching up and preparing for these things early, from a business perspective, is very strategic and necessary for Google/Alphabet.
They aren’t the only ones doing it, so are Amazon, Apple and Microsoft. So, expect more large companies consuming or merging with smaller innovative companies or startups.
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Lawrence writes about tech, lifestyle, politics, business, crypto and occasionally entertainment. He writes for Newslibre and Spur Magazine while consulting with numerous international companies on strategy, community management and marketing.
He has contributed to the journalism, open source, film, youth, web, Andela and Mozilla communities.