WearablesWearables

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Author: Cliff Raskind
Publication Date: Dec 07 2016
Pages: 3
 Report Type: Insight, Word

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Wearables

Fitbit Snatches Up Pebble: Erases a Minor Competitor, Gains Expertise



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Report Summary:

Fitbit confirmed this week it will buy select non-hardware assets of early smartwatch innovator Pebble for an estimated US$35 million. The #1 wearable player in the world will move to kill off Pebble’s existing hardware line leaving an estimated 1.5 million existing Pebble users in the lurch for new features. The real prize for Fitbit is the wearable pioneer’s software and IP assets. Fitbit comes off of a lacklustre quarter and has come under increasingly harsh criticism for exorbitant levels of organic R&D spend. Snatching up Pebble will at once allow Fitbit it to better defend its turf against Apple and Android Wear. Both have tacked towards fitness positioning in recent products but hold a far broader ecosystem advantage to ultimately make connected wristwear more compelling.
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