FibBit Snapping Up Pebble for 40 Million? What Ripples Can We Expect in the Wearable Industry?

FibBit Snapping Up Pebble for 40 Million? What Ripples Can We Expect in the Wearable Industry?

Fitbit looks as though it is acquiring the wearable upstart Pebble for what Fitbit describes as a “small amount”.  There are now speculations that the motive for this consolidation move by Fitbit is based on the fitness tracker giant’s desire for Pebble’s smartwatch intellectual property and software.

Fitbit is certainly looking add Pebble as a feather in their wearable technology cap.  After all, Pebble was on the cutting edge with a great smartwatch on the market in 2013, way ahead of many of the latest entries in the wearable space by large corporates after a piece of the huge smartwatch pie.

Check out: Fitbit Fitness Tracker Reviews

What does this mean for Pebble Smartwatch users?

While this is unclear now, there is wide speculation that Fitbit could shut down or phase out Pebble products once the deal is done, thereby leaving an unsure future for continued support.  This is particularly interesting as Pebble just released their latest smartwatch, Pebble 2, only two months ago. fitbit to acquire pebble smartwatch

But from reviewing Fitbit’s past history of attention to customer service and corporate image, it would be surprising if they wouldn’t continue to support products that were previously released under the Pebble umbrella of wearable products.

The past year has been a particularly challenging one for the Pebble manufacturer as they have experienced some financial challenges resulting in venture capital funding efforts as well as debt funding and loans.

What is particularly interesting is the refusal of two previous offers by Pebble CEO, Eric Migicovsky, in the recent past.  First there were talks of a $740 million offer from Citizen watches in 2015 and then a $70 million by Intel earlier this year.

Fitbit’s reported offer of $40 million in perspective of the two previous offers certainly gives some credibility to Fitbit’s perspective of a bargain basement acquisition cost, especially considering the intellectual property/software assets they will be requiring.

Some of you will recall our article last month on the 33% drop in Fitbit’s stock price due to Wall Street’s concern of lack of diversification within the Fitbit product range. 

READ: FITBIT: FITNESS TRACKER GIANT TAKES A STEP OFF A CLIFF THIS WEEK

Unlike Garmin, Apple, Samsung and Sony, Fitbit’s main product has been the domination of the fitness tracker vertical in the wearable market space.  This may account for some of the motivation behind this strategic move to branch more into other areas of wearable technology to set up a diversified long-term strategy for continued market share in emerging wearables.

Garmin has been particularly innovative in leveraging their own proprietary GPS technologies into developing cross-market initiatives and building in-house apps and technology upgrades.  Garmin has also been effective in listening to the user and delivering increased functionality across a multitude of user activities such as running and cycling.

READ: ATTENTION ALL CYCLISTS: GARMIN EDGE 1000 AND EDGE 820 NOW SUPPORTS JOIN CYCLING PLATFORM

What will be of continued interest is the effect this Wearable Smartwatch War will have on Fitbit’s struggling stock price in the future?  How will some of the other big players that have been posting consistent strong numbers in the game such as Garmin and Samsung react?

Only time will tell, but one thing is for sure….It will only get more interesting!

Are you a wearable tech junkie?  Check out the latest in News, Product Reviews, and Trends on Wearable Technology on I Wear the Tech.  We Find Tech that Fits You!


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