Google had made an announcement in the previous year regarding its efforts to acquire Fitbit, which has now been put under scrutiny by the Department of Justice. If the acquisition is completed the $2.1 billion purchase will be considered the largest in the history of the wearables sector. It will have a major implication for an industry which secured a retail value of about $46 billion in the previous year.

Stephen Mears, the research analyst at Futuresource Consulting stated that Fitbit will considerably boost the business engine of Google. WearOS has been losing out against Apple, Fitbit wearables and Samsung on the OS front. Fitbit has the capability to sail the OS business while Google Assistant is very likely to benefit from this.

Mears further said that the integration of the next-gen Fitbit wearables shall help in the expansion of Google into a larger range of tech and dislodging of Amazon. Google has continued its investment in various devices like the Pixel phone and Fitbit would be a part of the business adding momentum to the ambitions of the company to release a Pixel watch. The most important result of the purchase is its data, which could possibly be a sticking point that has encouraged a second round of review from the Department of Justice.

Wearables are mostly expected to secure the increasing data streams which Google has been seeking to access for several reasons, that especially includes its desire to move towards medical verticals. A number of consumer electronics vendors have been considering the profitable market opportunities in the medical space wherein the wearables are capable of reducing the entry to barriers.

Mears commented that Google is likely to look for retaining the name of Fitbit as it can see a future is written for the company. It has already created a wealth of brand equity by presenting a very positive lifestyle image and something that the consumers can relate to.

Source Credit- https://channellife.co.nz/story/google-s-fitbit-acquisition-under-scrutiny