Google confining Fitbit makes sense, but it’s a portent of doom

Fitbit has pulled its trackers out of practically 30 international locations or territories, based mostly on a choice from father or mother firm Google to “align” Fitbit and Pixel gross sales extra intently. An business professional advised me this was a “prudent” choice on Google’s half. But it nonetheless has me apprehensive that Google has no plan for Fitbit past its standard conservative gross sales M.O.Sunday Runday(Image credit score: Android Central)In his weekly column, our Senior Editor of Wearables and Fitness Michael Hicks discusses the world of smartwatches, apps, and health tech associated to working and well being, in his quest to get quicker and fitter (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. More 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 develop 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, as an example, and Google additionally annoyed foldable followers by limiting the Pixel Fold to a handful of nations.General Pixel availability has expanded — the Pixel 5 bought in lower than 10 international locations, whereas the Pixel 8 is present in 17 international locations — nevertheless it’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 smart that Google would not wish to waste assets promoting merchandise the place it has no foothold. However, simply because one thing is smart doesn’t suggest it is the suitable choice. Where is Fitbit nonetheless accessible?In an announcement to Android Authority, Google defined that they “will stop selling Fitbit products in select countries to align our hardware portfolio to map closer to Pixel’s regional availability.” So, the place can you continue to purchase new Fitbits?This is the present checklist: North America: Canada, United StatesEurope: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, The Netherlands, Norway, Spain, Sweden, SwitzerlandAsia & Pacific: Australia, India, Japan, New Zealand, Singapore, TaiwanThis 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, VenezuelaEurope: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, SlovakiaAsia & Pacific: Hong Kong, Korea, Malaysia, Phillipines, ThailandGoogle 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 Charge 6. Fitbit Premium auto-renewals additionally ended, although you possibly can manually “resubscribe to Premium in the Fitbit mobile app,” a minimum of for now. Why reducing Fitbit’s international availability is smartThe Pixel Watch 2 and Fitbit Charge 6 are extra interlinked than ever (Image credit score: @tshakaarmstrong)I requested Jitesh Ubrani, analysis supervisor for IDC’s Worldwide Mobile Device Trackers, if Google made the suitable or improper choice to drag Fitbit out of its conventional markets. He responded that “it’s not about Google doing right or wrong; it’s about Google being prudent.”As Ubrani defined, within the rising markets Fitbit fled, Fitbit’s market share “was quite low and trending downwards.” Why? Because shoppers both gravitate in the direction of “global brands such as Apple and Samsung” or “low-cost, value-oriented brands such as Xiaomi, Amazfit, or Huawei.” “Fitbit has been unable to establish itself at the high end since it only offered wearables…at the low end, it faced too much competition on price from the Chinese brands.”Xiaomi and Amazfit, kings of low cost however high-quality health trackers, technically profit from Google’s choice, however Ubrani believes their beneficial properties shall be “minimal” as a result of Fitbit’s new shipments have been “less than 1% share of smartwatches + wristbands” in a few of the affected territories. In 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 will nonetheless assist present Fitbit prospects to keep away from unhealthy blood, within the unlikely occasion it ever decides to return to those secondary markets. Google missed a possibility to kill two birds with one stoneGoogle Maps on-wrist navigation is one in all my favourite options on the brand new Charge 6 (Image credit score: Michael Hicks / Android Central)Fitbit has fallen from its gross sales glory days. Counterpoint’s 2022 wearable report discovered Fitbit dropping from Seventh-ranked in international gross sales in 2021 to 10th in 2022. But to be clear, Counterpoint attributed this particularly to Fitbit and Google “failing to defend their share in their main 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’s the definition of “my way or the highway.” Fitbit Sense 2 and Versa 4 gross sales suffered from this strategy. I’m undecided how the Charge 6 will promote, however I had one main Google-related annoyance in my evaluation: 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. So 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 price model in opposition to $50 Amazfit trackers makes whole sense. But if Fitbit could not “establish itself at the high end since it only offered wearables,” the answer was apparent: use Fitbit as your foot within the door to develop Pixels to extra international locations. They may have trusted the improbable Pixel 8 to realize recognition whereas suggesting that Fitbits are “Best with Pixel” and tying its health wagon to an thrilling new {hardware} possibility. They may even have bought the telephone with a free Fitbit tracker as a pre-order perk. Maybe I’m 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. But what I do know is that Google’s conservative monetary technique will persuade folks there that Google would not see them as definitely worth the effort, they usually’ll keep in mind.Let’s hope the tip is not nigh(Image credit score: Google)Calling Google’s choice a “portent of doom” would possibly sound a bit dramatic. But it is dramatic to slice your subbrand’s international locations in half, and Google’s status for reducing its losses and killing manufacturers is well-known.I can image a worst-case situation 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 could rub many Fitbit customers the improper method — 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:Challenge Apple Fitness Plus with extra exercises, licensed music, and different flashy perks.Challenge Garmin by making the Daily Readiness Score extra helpful for recommending particular health routines based mostly in your health levelGo all-in on Google apps.As I stated then, the final possibility “seems to be the path Google and Fitbit have chosen,” and this newest information about Google limiting 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 a number of Google tech inside. I want, as an alternative, that Google would unleash Fitbit’s full potential by investing in it after which letting it run unfastened, giving prospects the concept they’re getting premium options in inexpensive {hardware} with out Big Tech meddling. But as we have seen in numerous enterprise acquisitions, issues not often work out that neatly for the businesses which might be purchased.