When it comes to the wearables business, Samsung and Apple face strong competition from other brands, especially Fitbit and Pebble. Over the past few years, Fitbit has been trying to manufacture a device which isn’t just durable but also an excellent fitness tracker that could tackle the Apple Watch.
There is already one Pebble smartwatch which meets all these requirements. Therefore, Fitbit is interested in buying this brand. Also, it seems that Pebble will be bought for around $40 million, although the brand was estimated to at least twice as much.
Pebble became widely popular thanks to its Kickstarter campaigns during which the company sold many high-quality smartwatches. However, the latest reports reveal that the brand has laid off 25% of its workforce.
According to CEO Eric Migicovsky, the only reason is that the company is somehow running out of money. In other words, the brand has been on sale for some time, but it turned down generous offers from other companies.
More precisely, Citizen came with an offer of $74 million last year, whereas Intel offered $70 million this year, but if the brand had been sold, the Pebble 2 and Time 2 would have been launched later.
Now, Fitbit is the potential buyer of Pebble, and it seems that the company intends to introduce the Pebble’s operating system into future wearables. This strategy is expected to boost Fitbit’s sale because it would enhance the devices with new technology.
Fitbit has always been manufacturing fitness trackers, while Pebble focused mostly on smartwatches. Although Fitbit Blaze is the company’s latest device resembling a smartwatch, it still looks more like a fitness tracker.
Therefore, Fitbit is interested in Pebble’s technology and not its line-up, meaning that the Pebble 2 and Time 2 are probably the last devices branded by this company. Analysts predict that if Fitbit buys Pebble, the next smartwatch will most likely be a high-demand product.
This will be very important for the company, especially after the Blaze didn’t make quite an impression at first as many customers thought that it tried to imitate the Apple Watch.
Because of this, the brand’s stock dropped down by over 13 percent. However, the Blaze has turned out to be quite different from the Apple Watch thanks to the fact that it is mainly a fitness tracker which features a smartwatch design.
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