Google snaps up Fitbit, amping up wearables market

WASHINGTON: Google agreed to buy Fitbit for US$2.1bil (RM8.7bil) in a move giving the US tech giant a fresh entry in the wearable technology space and helping it ramp up its challenge to Apple.

The deal for one of the top makers of fitness trackers comes with the Internet search leader seeking to expand further into hardware.

“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, more active life,” Fitbit co-founder and chief executive James Park said in a statement by the two firms announcing the deal on Friday.

“Google is an ideal partner to advance our mission.”

Rick Osterloh, Google senior vice-president for devices and services, said the deal means “bringing together the best hardware, software and AI” to bring more wearables to the marketplace.

“Google aspires to create tools that help people enhance their knowledge, success, health and happiness. This goal is closely aligned with Fitbit’s long-time focus on wellness and helping people live healthier, more active lives,” Osterloh said in a blog post.

The companies said the Fitbit platform would remain “platform-agnostic” and continue to serve Apple’s iOS devices as well as those powered by the Google

Android system.

The tie-up may also enable Google to expand into digital health, following Apple in partnerships with researchers and medical facilities which use wearables to collect data.

“Google sees important opportunities in digital health moving forward, but they needed a stronger set of devices to fit into the digital health environment,” said Bob O’Donnell, chief analyst at Technalysis Research.

While Fitbit helped popularise fitness bands and trackers, it has lost ground in recent years to rivals in the wearables market.

A survey by research firm IDC for the second quarter of 2019 found Fitbit in fourth place in a market led by Xiaomi, followed by Apple and Huawei.

Fitbit introduced its own smartwatch in 2017 but it has failed to keep pace with the Apple Watch, introduced in 2015.