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Fitbit has pulled its trackers out of practically 30 international locations or territories, primarily based on a call 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. Nevertheless it nonetheless has me fearful that Google has no plan for Fitbit past its normal 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 working and well being, in his quest to get sooner and fitter (and show you how to do the identical).
Fitbit first lower its gadgets from 5 APAC international locations again in August, then 11 European international locations on October 24, and eventually Mexico, Puerto Rico, and 10 Latin American international locations at an unspecified (however latest) time. Extra a shamed whisper than an announcement, this information wasn’t broadly identified till 9to5Google noticed the assist web page on Thursday.
Google’s reluctance to increase Pixel gross sales out of some international locations or to maintain particular merchandise from international locations is infamous. Our Senior Asia Editor, Harish Jonnalagadda, has written at size about Google’s {hardware} errors in India, for example, and Google additionally pissed off foldable followers by limiting the Pixel Fold to a handful of nations.
Basic Pixel availability has expanded — the Pixel 5 bought in lower than 10 international locations, whereas the Pixel 8 is present in 17 international locations — but it surely’s nonetheless very gradual and methodical in comparison with Samsung or Apple. With Google apps changing into a significant characteristic of Fitbit merchandise, it is sensible that Google would not need to waste sources promoting merchandise the place it has no foothold.
Nevertheless, simply because one thing is sensible does not imply it is the proper resolution.
The place is Fitbit nonetheless accessible?
In an announcement to Android Authority, Google defined that they “will cease promoting Fitbit merchandise in choose international locations 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 record:
- 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 record of former Fitbit international locations 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 assist, guarantee claims, and customer support in these international locations, however just for older Fitbits, not newer trackers just like the Fitbit Cost 6. Fitbit Premium auto-renewals additionally ended, although you possibly can manually “resubscribe to Premium within the Fitbit cellular app,” at the very least for now.
Why reducing Fitbit’s world availability is sensible
I requested Jitesh Ubrani, analysis supervisor for IDC’s Worldwide Cell Gadget Trackers, if Google made the precise or fallacious resolution to tug Fitbit out of its conventional markets. He responded that “it isn’t about Google doing proper or fallacious; 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 “world manufacturers akin to Apple and Samsung” or “low-cost, value-oriented manufacturers akin to Xiaomi, Amazfit, or Huawei.”
“Fitbit has been unable to determine itself on the excessive finish because it solely supplied 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 health trackers, technically profit from Google’s resolution, however Ubrani believes their positive aspects can be “minimal” as a result of Fitbit’s new shipments had been “lower than 1% share of smartwatches + wristbands” in a few of the affected territories.
On this context, it appears completely legitimate that Google, having spent $2.1 billion on Fitbit, would lower its losses in markets the place it is unlikely ever to recoup its funding. It can nonetheless assist 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 possibility 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 world 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 predominant 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 manner or the freeway.”
Fitbit Sense 2 and Versa 4 gross sales suffered from this method. I am unsure how the Cost 6 will promote, however I had one main Google-related annoyance in my overview: the insistence that it solely helps YouTube Music playback controls when any low-cost health tracker often has common playback controls.
In different phrases, Google and Fitbit have larger 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 rapidly lower their losses.
Ubrani’s level that Fitbit won’t ever compete as a worth model towards $50 Amazfit trackers makes whole sense. But when Fitbit could not “set up itself on the excessive finish because it solely supplied wearables,” the answer was apparent: use Fitbit as your foot within the door to increase Pixels to extra international locations.
They might have trusted the incredible Pixel 8 to realize reputation whereas suggesting that Fitbits are “Finest with Pixel” and tying its health wagon to an thrilling new {hardware} choice. They might even have bought the telephone 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 international locations. 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, they usually’ll bear in mind.
Let’s hope the tip is not nigh
Calling Google’s resolution a “portent of doom” would possibly sound a bit dramatic. Nevertheless it’s dramatic to slice your subbrand’s international locations in half, and Google’s popularity for reducing its losses and killing manufacturers is well-known.
I can image a worst-case state of affairs the place Google grows uninterested in Fitbit’s struggles with out addressing the trigger, shoves its useful 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 very best options.
Taking this path would possibly make followers of Android smartwatches joyful, however it might rub many Fitbit customers the fallacious manner — particularly since Fitbit is widespread 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 primarily based in your health degree
- Go all-in on Google apps.
As I stated 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 lots 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 they’re getting premium options in reasonably priced {hardware} with out Massive Tech meddling.
However as we have seen in numerous enterprise acquisitions, issues hardly ever work out that neatly for the businesses which might be purchased.
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