Google’s acquisition of Fitbit will help company to compete with Apple Watch, says GlobalData

Following today’s news (Friday 1st November) that Google have acquired Fitbit for $2.1bn;

Lynnette Luna, Principle Technology Analyst at GlobalData, a leading data and analytics company, assesses the benefits of this acquisition for Google:

“Smartwatches were a revenue saviour for Apple in its most recent quarterly results, and the biggest selling point for these devices are health and wellness. Google doesn’t have a comparable product, and has in fact struggled to give its OEM partners a good smartwatch operating system for the Android market.

“Fitbit should give Google a wealth of information about user fitness and wellness to hone new smartwatches in that direction. Still, Fitbit health trackers have now become a commodity, and both companies have struggled to move upmarket into smartwatches. Google will have to come to market with exceptional hardware and software that will rival the capabilities of the Apple Watch, which is now on its fifth generation.

“And then there are questions about what happens to a user’s data when Google owns it. Google has promised to keep its ad algorithms away from Fitbit data, but it hasn’t said anything about artificial intelligence, which is the crux of making better and more customized products. Like those Google customers who use products like Google Assistant and Nest, users will have to trust that their data is safe. Meanwhile, Apple is marketing itself as the privacy company.”

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