Fitbit has pulled its trackers out of almost 30 nations or territories, based mostly on a choice from dad or mum firm Google to “align” Fitbit and Pixel gross sales extra carefully. An business skilled informed me this was a “prudent” resolution on Google’s half. However it nonetheless has me frightened that Google has no plan for Fitbit past its typical conservative gross sales M.O.
Sunday Runday
In his weekly column, our Senior Editor of Wearables and Health Michael Hicks discusses the world of smartwatches, apps, and health tech associated to operating and well being, in his quest to get quicker and fitter (and show you how to do the identical).
Fitbit first reduce its units from 5 APAC nations again in August, then 11 European nations on October 24, and eventually Mexico, Puerto Rico, and 10 Latin American nations at an unspecified (however latest) time. Extra a shamed whisper than an announcement, this information wasn’t broadly identified till 9to5Google noticed the support page on Thursday.
Google’s reluctance to broaden Pixel gross sales out of some nations or to maintain particular merchandise from nations is infamous. Our Senior Asia Editor, Harish Jonnalagadda, has written at size about Google’s hardware mistakes in India, for example, and Google additionally annoyed foldable followers by limiting the Pixel Fold to a handful of nations.
Normal Pixel availability has expanded — the Pixel 5 offered in lower than 10 nations, whereas the Pixel 8 is present in 17 nations — however it’s nonetheless very gradual and methodical in comparison with Samsung or Apple. With Google apps changing into a serious characteristic of Fitbit merchandise, it is sensible that Google would not need to waste sources promoting merchandise the place it has no foothold.
Nonetheless, simply because one thing is sensible doesn’t suggest it is the proper resolution.
The place is Fitbit nonetheless obtainable?
In a press release to Android Authority, Google defined that they “will cease promoting Fitbit merchandise in choose nations to align our {hardware} portfolio to map nearer to Pixel’s regional availability.” So, the place can you continue to purchase new Fitbits?
That is the present checklist:
- North America: Canada, United States
- Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Eire, Italy, The Netherlands, Norway, Spain, Sweden, Switzerland
- Asia & Pacific: Australia, India, Japan, New Zealand, Singapore, Taiwan
That is the checklist of former Fitbit nations with no new {hardware} gross sales shifting ahead:
- Americas: Argentina, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru, Puerto Rico, Venezuela
- Europe: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia
- Asia & Pacific: Hong Kong, Korea, Malaysia, Phillipines, Thailand
Google and Fitbit have promised to proceed software program help, guarantee claims, and customer support in these nations, however just for older Fitbits, not newer trackers just like the Fitbit Charge 6. Fitbit Premium auto-renewals additionally ended, although you may manually “resubscribe to Premium within the Fitbit cell app,” a minimum of for now.
Why reducing Fitbit’s international availability is sensible
I requested Jitesh Ubrani, analysis supervisor for IDC’s Worldwide Cellular System Trackers, if Google made the best or incorrect resolution to drag Fitbit out of its conventional markets. He responded that “it isn’t about Google doing proper or incorrect; it is about Google being prudent.”
As Ubrani defined, within the rising markets Fitbit fled, Fitbit’s market share “was fairly low and trending downwards.” Why? As a result of shoppers both gravitate in direction of “international manufacturers reminiscent of Apple and Samsung” or “low-cost, value-oriented manufacturers reminiscent of Xiaomi, Amazfit, or Huawei.”
“Fitbit has been unable to ascertain itself on the excessive finish because it solely provided wearables…on the low finish, it confronted an excessive amount of competitors on value from the Chinese language manufacturers.”
Xiaomi and Amazfit, kings of low-cost however high-quality fitness trackers, technically profit from Google’s resolution, however Ubrani believes their good points can be “minimal” as a result of Fitbit’s new shipments have been “lower than 1% share of smartwatches + wristbands” in a number of the affected territories.
On this context, it appears completely legitimate that Google, having spent $2.1 billion on Fitbit, would reduce its losses in markets the place it is unlikely ever to recoup its funding. It is going to nonetheless help present Fitbit clients to keep away from dangerous blood, within the unlikely occasion it ever decides to return to those secondary markets.
Google missed a chance to kill two birds with one stone
Fitbit has fallen from its gross sales glory days. Counterpoint’s 2022 wearable report discovered Fitbit dropping from Seventh-ranked in international gross sales in 2021 to tenth in 2022. However to be clear, Counterpoint attributed this particularly to Fitbit and Google “failing to defend their share of their most important markets like North America” (emphasis mine).
Google’s tenure as Fitbit proprietor has been outlined by the phrase “no.” No extra Google Assistant, no extra third-party apps, no extra Fitbit accounts, no extra Wi-Fi downloads, and so forth. It is the definition of “my approach or the freeway.”
Fitbit Sense 2 and Versa 4 gross sales suffered from this strategy. I am undecided how the Cost 6 will promote, however I had one main Google-related annoyance in my evaluation: the insistence that it solely helps YouTube Music playback controls when any low-cost health tracker normally has common playback controls.
In different phrases, Google and Fitbit have greater issues than simply being overextended. A lot in order that they did not see Fitbit’s widespread identify recognition as the chance it was, and shortly reduce their losses.
Ubrani’s level that Fitbit won’t ever compete as a price model in opposition to $50 Amazfit trackers makes whole sense. But when Fitbit could not “set up itself on the excessive finish because it solely provided wearables,” the answer was apparent: use Fitbit as your foot within the door to broaden Pixels to extra nations.
They might have trusted the incredible Pixel 8 to attain reputation whereas suggesting that Fitbits are “Greatest with Pixel” and tying its health wagon to an thrilling new {hardware} choice. They might even have offered the cellphone with a free Fitbit tracker as a pre-order perk.
Perhaps I am naive, and Google execs might clarify why it is not possible to promote Fitbits or Pixels in Mexico, Poland, and dozens of different spurned nations. However what I do know is that Google’s conservative monetary technique will persuade folks there that Google does not see them as definitely worth the effort, and so they’ll bear in mind.
Let’s hope the top is not nigh
Calling Google’s resolution a “portent of doom” would possibly sound a bit dramatic. However it’s dramatic to slice your subbrand’s nations in half, and Google’s fame for reducing its losses and killing manufacturers is well-known.
I can image a worst-case state of affairs the place Google grows bored with Fitbit’s struggles with out addressing the trigger, shoves its precious tech into its Pixel lineup, and lets Fitbit die. Or maybe Google will begin promoting Fitbits as Pixel Bands or Pixel Watch Lites, with the flagship Pixel Watch 2 snagging all the most effective options.
Taking this path would possibly make followers of Android smartwatches joyful, however it will rub many Fitbit customers the incorrect approach — particularly since Fitbit is common with iOS customers, and the Pixel identify implies Android exclusivity.
A few months again, I wrote about three potential paths Fitbit would possibly take within the close to future:
- Problem Apple Health Plus with extra exercises, licensed music, and different flashy perks.
- Problem Garmin by making the Every day Readiness Rating extra helpful for recommending particular health routines based mostly in your health stage
- Go all-in on Google apps.
As I mentioned then, the final choice “appears to be the trail Google and Fitbit have chosen,” and this newest information about Google limiting Fitbit solely reaffirms that perception. Google spent $2.1 billion on Fitbit for what it was, having no plans for the place it ought to transcend shoving loads of Google tech inside.
I want, as a substitute, that Google would unleash Fitbit’s full potential by investing in it after which letting it run unfastened, giving clients the concept that they’re getting premium options in reasonably priced {hardware} with out Huge Tech meddling.
However as we have seen in numerous enterprise acquisitions, issues not often work out that neatly for the businesses which are purchased.