Topic: Fitbit (2024)

Health, fitness, wellness, and regular training are top priorities for many people these days, and tracking those metrics has also become essential. Fitbit is a California-based company that develops and manufactures compact, wireless wearable technology for the health and fitness industry. Founded in 2007, the company gained attention due to its rapid growth and success. Over just six years, Fitbit’s revenue increased from five million U.S. dollars in 2010 to more than two billion U.S. dollars in 2016. Soon after, Fitbit experienced a period of declining revenues, dropping to just over one billion U.S. dollars in 2022.

Fitbit trying to secure a spot in the growing wearable market

Fitbit’s first device, the Fitbit Classic, was released in the consumer market in 2009 and had limited features compared to the most recent models. To stay competitive in the fast-growing wearable technology industry, the company made available multiple models and features throughout the years. Since 2010, Fitbit has sold over 136 million devices worldwide and counted around 120 million registered users in 2022. Despite its prices being lower than those of other market players, Fitbit has struggled with declining sales in recent years and has been competing with the likes of Apple, Xiaomi, and Huawei. Particularly, Apple leads the wearable device market, counting over 146 million units shipped globally in 2022.

Google acquires Fitbit

In early 2021,  Alphabet Inc., the parent company of Google, completed the acquisition of Fitbit in a deal that valued the company at 2.1 billion U.S. dollars, making Fitbit Google’s fourth largest acquisition. Thanks to the acquisition, it is likely that Google will be more established in the wearable industry, while Fitbit devices might come back into the race for the top spot in the wearables market. Evidence of this is the new Google Pixel Watch, which will supposedly integrate Fitbit’s ecosystem, including the Fitbit app, health sensor, and heart rate monitor.