Google has already joined other major technology companies like Apple Inc and also Samsung Electronics Co Ltd in order to develop smart phones but on the other hand it has yet to develop any wearable offerings.
Google owner Alphabet in bid to buy Fitbit
As per to the recent reports, Google owner Alphabet Inc has made an offer in order to obtain U.S. wearable device maker Fitbit Inc in order to serve the crowded market for fitness trackers and smartwatches.
It also seems to be like that there is no faith that the negotiations among Google and Fitbit is going to lead to any deal, the sources said, probing not to be identified for the reason that the matter is confidential. The precise price that Google has offered for Fitbit may possibly not be learned.
In the meantime, Google as well as Fitbit have declined to comment on this matter at this stage of time.
On the other hand, Fitbit shares rose 27 per cent on the news, which in other terms gives the company a market capitalisation of USD 1.4 billion. Alphabet shares also rose 2 per cent to USD 1,293.49.
A deal for Fitbit would come as its dominant share of the fitness tracking sector carries on to be cut away by cheaper offerings from several companies like Huawei Technologies Co Ltd and Xiaomi Corp from China.
Fitbit’s fitness trackers also helps in monitoring users’ daily steps, calories burned as well as distance travelled. They also measure floors climbed, sleep duration and quality, along with the heart rate.
Fitbit has also helped pioneer the wearable devices craze in the market. It has been partnering with health insurers as well as it has been creating tuck-in acquisitions in the healthcare market, as part of efforts in order to diversify its revenue stream. Analysts on the other hand have said that much of the company’s value might possibly now lie in its health data.
Fitbit cut its 2019 revenue forecast in the month of July, where they blame disappointing sales of its newly launched cheapest smartwatch Versa Lite. The watch is priced at USD 160, as compared with USD 200 for the full version. It can track workouts as well as the heart rate but at the same time it also lacks features such as the ability to store music directly.
In the month of August, Fitbit said it had signed a contract with the Singapore government in order to provide fitness trackers as well as services in a health programme it said may possibly reach up to 1 million users.
In the meantime, Fitbit is also scheduled to report third-quarter earnings on November 6. Alphabet on the other hand is scheduled to report third-quarter earnings later on Monday.
