Fitbit has pulled its trackers out of almost 30 international locations or territories, based mostly on a call from guardian firm Google to “align” Fitbit and Pixel gross sales extra carefully. An trade professional advised me this was a “prudent” resolution on Google’s half. But it surely nonetheless has me nervous that Google has no plan for Fitbit past its standard 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 sooner and more healthy (and aid you do the identical).
Fitbit first minimize 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 extensively recognized till 9to5Google noticed the assist web page on Thursday.
Google’s reluctance to broaden 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 offered in lower than 10 international locations, whereas the Pixel 8 is present in 17 international locations — but it surely’s nonetheless very sluggish and methodical in comparison with Samsung or Apple. With Google apps changing into a serious function of Fitbit merchandise, it is sensible that Google would not wish to waste assets promoting merchandise the place it has no foothold.
Nevertheless, simply because one thing is sensible doesn’t suggest it is the proper resolution.
The place is Fitbit nonetheless obtainable?
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 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 international locations with no new {hardware} gross sales transferring 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 may manually “resubscribe to Premium within the Fitbit cellular app,” a minimum of for now.
Why slicing Fitbit’s world availability is sensible
I requested Jitesh Ubrani, analysis supervisor for IDC’s Worldwide Cellular System Trackers, if Google made the best or flawed resolution to drag Fitbit out of its conventional markets. He responded that “it isn’t about Google doing proper or flawed; 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 resembling Apple and Samsung” or “low-cost, value-oriented manufacturers resembling Xiaomi, Amazfit, or Huawei.”
“Fitbit has been unable to determine 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 health trackers, technically profit from Google’s resolution, however Ubrani believes their good points will probably be “minimal” as a result of Fitbit’s new shipments had 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 minimize its losses in markets the place it is unlikely ever to recoup its funding. It can nonetheless assist present Fitbit prospects 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 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 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 means or the freeway.”
Fitbit Sense 2 and Versa 4 gross sales suffered from this method. I am undecided how the Cost 6 will promote, however I had one main Google-related annoyance in my evaluate: 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 shortly minimize 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 provided wearables,” the answer was apparent: use Fitbit as your foot within the door to broaden Pixels to extra international locations.
They may have trusted the implausible Pixel 8 to realize recognition whereas suggesting that Fitbits are “Finest with Pixel” and tying its health wagon to an thrilling new {hardware} possibility. They may even have offered the telephone with a free Fitbit tracker as a pre-order perk.
Perhaps I am naive, and Google execs may 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 would not see them as well 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. But it surely’s dramatic to slice your subbrand’s international locations in half, and Google’s popularity for slicing 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 invaluable 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 perfect options.
Taking this path would possibly make followers of Android smartwatches completely happy, however it will rub many Fitbit customers the flawed means — particularly since Fitbit is in style 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 Each 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 possibility “appears to be the trail Google and Fitbit have chosen,” and this newest information about Google proscribing 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 quite a lot 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 prospects the concept that they’re getting premium options in reasonably priced {hardware} with out Large Tech meddling.
However as we have seen in numerous enterprise acquisitions, issues not often work out that neatly for the businesses which can be purchased.
