Fitbit may have not let on to how much pressure it has felt from the Apple SmartWatch and others. So much so according to sources it is acquiring smartwatch maker Pebble. The wearable industry is declining so it makes sense that these two would team up. Pebble laid off a quarter of its workforce. Pebble being phased out will be hard to watch. It was one of the first to take Kickstarter and the wearable industry by storm.
We don’t know how much Fitbit is getting Pebble for but since they are mainly after its intellectual property it most likely won’t be that much. Fitbit might be paying $40 million for Pebble. While that sounds like a lot it is small changed compared to the $70 million Intel was offering earlier this year. Previously unreported offers were double that at $70 million from Intel earlier in the year. Pebble is loved by many. The smartwatch operating system alone is worth it.
Pebble will no longer produce or sell new hardware. Active Pebbles in the wild will keep working. #pebbleXfitbithttps://t.co/SMau6NhCEl pic.twitter.com/8NXb1wBZqu
— Pebble (@Pebble) December 7, 2016
While Pebble will help Fitbit it might not save it from a slow death. Fitbit a very rough time and has posted weaker guidance for the holiday season. Other companies like Jawbone and Nike already bailed on the crowded tracker market. Seems it’s harder said than done to take on Apple Watch and the Android Wear devices with their recognition.