The wearable tech market is a bit of an oddity. Everyone being different wants and needs from a very person device. Because of that their’s many chances to succeed and just as many to fail. Fitbit has been doing pretty good from themselves. To the point where they have bought other companies like I buy Pop Figures(monthly and with a smile on my face). Despite that Fitbit will be cutting 6% of its workforce(or about 110 jobs). Couple that with the news of missing this revenue projections and their move to basically buy every company they can seem to make a lot more sense.
The wearable market needs a huge jumpstart. Fitbit sold 6.5 million devices in the last three months. And though that does sound impressive, when you think about it in the larger scheme the market is a bit stagnant. Fitbit is the top player in the wearable game and they obviously aim to keep it that way. Looking at some of their recent acquisitions it’s clear that Fitbit wants to make the next must have wearable. They recently bought Ticwatch and Pebble. The former of which has made a hell of a compelling device with their Ticwatch 2 and the later of who made the market something worth paying attention to. Chances are no matter how unfortunate the job cuts are(personally, I don’t like hearing anyone is losing their means of survival) this is a strategic move to bring talent from the newly acquired companies in the fold.
Fitbit has led the wearable market thanks to their fitness trackers. But their efforts in the smartwatch department has felt short functionality wise compared to the competition. They decided to play more to their strengths in fitness with smart functions seeming to be more of a “oh yeah it does this too.” But the companies they have bought have fully invested in the idea of the smartwatch and have worked to focus of those smart with some fitness stuff sprinkled in(not in bad way). Now Fitbit has the type of talent they have needed to create a Fitbit that blends both their fitness prowess and an actual fleshed out smartwatch in a way that if done correctly could give Apple, Samsung, and Google something to worry about.
One very telling purchase Fitbit made was of Coin; the company behind the smart credit card that could have been a contender. They’re also a company that knows a bit about dealing with credit card company’s, bank security, and making thin devices. Pair that with everything else and we could have the beginning of an interesting device lineup.