The San Francisco, California-based Fitbit (NYSE: FIT) is known for making wireless-enabled wearable technology devices and activity trackers that measures fitness-related data like heart rate, the number of steps walked, steps climbed, quality of sleep, and such others. The company dominates the wearable segment in many countries, including specialist GPS watches, running watches, and activity trackers. Often, they have a more than 50 percent market share.
However, Fitbit is not usually associated with the non-health wearable segment.
But that is about to change soon, as Fitbit is said to be launching a smartwatch in 2017. This will put the business in the same league as Apple (NASDAQ:AAPL), and a few others. Of course, Fitbit and Apple aren’t the only businesses with a smartwatch. There are many others, such as Samsung, Sony, and a few kick starter projects that are coming up with their own smartwatches.
Fitbit Confirms They Are Working On a Smartwatch
In fact, there has been speculation for a long time that Fitbit wants to bring out a smartwatch, though the business has not been doing very well in recent times. Eventually, James Park, the CEO, admitted last month that they were indeed at an advanced stage of developing a smartwatch.
James did not disclose a release date but said that it will come out sometime in 2017.
Fitbit Go on an Acquisition Spree to Launch Their Smartwatch
Fitbit has recently acquired two businesses in the smartwatch segment with a total worth of $38 million, which shows how keen they are. The company spent $23 million on Pebble. This was followed by taking over Vector Watch from London. Fitbit also acquired Coin in early 2016 for their payment technology. These purchases were mostly to acquire talent and intellectual property, and not products or operations.
Fitbit issued a statement after these purchases saying, “We bought a lot of talent, and we bought the platform on which Pebble was built, which was its core USP. All these acquisitions are meant to accelerate our entry into the smartwatch category”.
There has been a lot of spotlight in the smartwatch space, particularly after the entry of Apple. Both traditional watchmakers and tech companies are planning their own smartwatches.
Fitbit’s (NYSE:FIT) smartwatch is likely to be much more than the Blaze, which was more of a fitness tracker.