Google to buy Fitbit

Google has agreed to buy Fitbit for $2.1 Billion in a move giving the US tech giant entry into the wearable technology space. The move comes with Google seeking to expand beyond its core the business of online search into hardware, and with Fitbit struggling against rivals including Apple.

While Fitbit was among the first to popularize fitness bands, it has lost ground in recent years to rivals. A survey by research firm IDC for the second quarter of 2019 found Fitbit in fourth place in a market led by China's Xiaomi leading the global market, followed by Apple -- which makes the leading smartwatch -- and Chinese-based Huawei.

Fitbit has introduced its own smartwatch in 2017 but it has failed to keep pace with the Apple Watch. Google, which faces pressure from regulators around the world over its dominance of internet search has been boosting its hardware offerings, including a line of Pixel smartphones and tablets, along with connected speakers.

Fitbit’s fitness trackers monitor users’ daily steps, calories burned and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate. The company has been partnering with health insurers and has been making tuck-in acquisitions in the healthcare market, as part of efforts to diversify its revenue stream.

Fitbit enters Indian Market

Fitbit has formally entered the Indian Market by launching its complete range of fitness bands both online and offline and is aiming to become the No. 1 player in local market in the near future. The company expects India to be among its top 5 markets in next couple of years. The Indian market is currently led by Chinese company Xiaomi with its Mi Band.

Founded by James Park and Eric Friedman in 2007, San Francisco based Fitbit claims to lead the US Fitness tracker market with an 85 percent share as of March 2015, up from 67 percent a year earlier. Its revenue more than tripled from a year earlier in the quarter through March 2015. Fitbit product can be synchronized with more than 200 smartphones running on iOS, Android and Windows operating systems, as well as Apple Mac OS.

In India, the market of wearable is embryonic, selling a handful of products like smart watches and fitness brands launched by handset makers such as Samsung, Sony, Motorola, and Alcatel One touch. The fitness band segment has lately seen some action with players like Xiaomi, Micromax, Goqii making their products available at competitive price points. Fitbit too soft launched its bands in June, offering them on Amazon India.

The company will now offer its products through partnerships with Reliance Digital, Croma and Helios, which sell Fitbit seven products. There are several cheaper products available in Indian Market from rival companies. Sales of wearable devices such as smart watches and fitness bands in India totaled one lakh units in 2014 and are expected to grow to a million in 2015. Indian market reached three lakh units by the end of the second quarter of 2015.