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.

Google acquires “Where is My Train”

Global search giant Google has made its first product acquisition in India with Bengaluru based startup Where is My Train, which provides live train updates through an app without the use of Internet and the Global Positioning System (GPS).

Where Is My Train has been founded by five former executives of the US based technology entertainment company TiVo Corporation. The acquisition comes after reports in August in which Google and smartphone maker Xiaomi were said to be competing to acquire the company for nearly $30 Mn- $40 Mn. With the acquisition, Google may further amplify its presence in tier 2, 3, and 4 cities along with remote parts of the country where internet penetration is negligible.

Where Is My Train’s mobile app has recorded more than 10 Mn downloads and uses information from the cell tower instead of the internet or GPS to locate trains in real time. The app also helps people select the train after selecting their source and destination on the app. The services are currently available in English as well as eight regional languages including English, Hindi, Bengali, Marathi, Malayalam, Kannada and more.

The company’s mission is to use “technology to improve the lives of millions of Indian train travellers.” India boasts the fourth-largest railway network in the world with a total route length of 67,368 km (according to Indian Railways statistics from 2016-17) and 8,116 Mn originating passengers annually. However, Indian trains are perpetually getting delayed or cancelled. In such a scenario, an app may well be a boon for passengers.

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. 

Lenovo acquired Motorola from Google

In January this year, Lenovo announced it was going to buy Motorola Mobility business this year from Google. Now this deal is signed, Lenovo acquired Motorola from Google in $2.91 Billion. While Motorola is now a Lenovo Company, the brand will remain a subsidiary based out of Chicago. Google bought Motorola in 2012 for $12.5 Billion, at the time stating that it was interested in its patent portfolio. Now, Google maintains most of the patents and passes on the handset business to Lenovo.

Motorola Mobility, a Google company, creates mobile devices and wireless accessories that simplify, connect and enrich people lives. The acquisition of such an iconic brand, innovate product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. This deal made Lenovo the world’s third bestselling smartphone maker after Apple and Samsung.

Lenovo is the world’s bestselling PC maker, a position it attained after the takeover of IBM’s personal computer business in 2005. Its smartphones are already selling in Asia and the Middle East, but they have not been sold in North America and Western Europe. Lenovo and Motorola together form the third largest smartphone player worldwide, pushing rival Xiaomi from the No 3 position to No 4, according to date from IDC.

IDC worldwide smartphone data showed Samsung leading with 23.8%, followed by Apple with 12%, Xiaomi with 5.3%, and Lenovo following closely with 5.2%, and LG with 5.1%. Lenovo has a very good business in India through the offline channel and Motorola is present only on line. Since its resurrection early this year, Motorola has sold more than two million smartphones, including the Moto G, Moto X, and Moto E. The Motorola-Lenovo combine intends to sell about 100 Million smartphones and tablets globally by the end of march next year, while Lenovo aims to bring Motorola back to profitability within four to six quarters.

Motorola will operate their Motorola solutions as a separate business and is not a part of acquisitions. Motorola business formally split in 2011.

Xiaomi to enter India

Xiaomi is a privately owned Chinese company headquartered in Beijing, China. It was founded in year 2010. It is China’s one of the largest electronics companies that designs, develops, and sells smartphones, mobile apps, and consumer electronics. China has gained a large market share. The company is mainly set in Malaysia, China, and Singapore. Company is expanding their business to India and Indonesia this year.

In recent news, Xiaomi is planning to enter India through Flipkart, which sells electronics gadget on its portal. The Chinese manufacturer who is behind some impressive smartphones such as Redmi, Mi3, and Mi4 plans to reach these shores soon enough. Xiaomi will bring Redmi and Mi3 into India. They might be seen on Flipkart portal in Mid-July or Mid-August. The Mi3 is company flagship phone featuring a 5-inch full HD touchscreen, 2GB of RAM, a 2.3GHz Snapdragon 800 processor, a 13MP Sony Camera and 16GB internal Memory. The OEM is reported to have sold 100000 units of Mi3 in China within 90 seconds. Xiaomi Redmi that Flipkart will be vending soon, is a relatively cheap handset with a 4.7 inch 720p panel, 1 GB of RAM, a quad core MediaTek chipset, dual SIM slots, an 8MP snapper, and 4GB ROM. Redmi and Mi3 will be priced at around Rs 8000 and 15000 respectively.

The other products that we might see are MiPad. It is a 7.9-inch MiPad that may be enters India too. However, it would not be possible that Flipkart will sell this on their portal because they have recently launched a Tablet in market. If Flipkart launches MiPad on its portal than there are chances, that sale of tablet will effect. MiPad is available in 16GB and 64GB models with 2GB of RAM, 8MP rear and 5MP front-facing camera.

Xiaomi had sold 40 million handsets in 2014 year, more than double the number sold it in 2013. It should be noted that the company is known for its competitive pricing which has helped it achieve huge sales numbers.