When it comes to wearables and activity trackers, Fitbit has always been at the top of the market. Today the company announced that it has acquired Vector Watch, which is a European luxury smartwatch maker. The price of the acquisition was not disclosed, but this is great news for people who are interested in wearables on both iOS and Android.
Fitbit Acquires London-Based Vector Watch
Vector Watch is based out of London and has only been out since March 2016. Even though Vector Watch has been out less than one year, the company already had put out 12 different smartwatches in various styles and colors. Now, Fitbit has announced that the company has acquired Vector Watch for an undisclosed amount of money.
When you look at Vector watches, you have third-party apps that are already built into the watch, plus other features like 30-day battery life, and phone notifications. Of course, another feature of Vector smartwatches is that they have basic activity tracking on them too. On the website, Vector said that the company is happy to be joining the Fitbit brand, since Fitbit is the leader in both the fitness and health markets.
Vector also said that this is a milestone because it can help the company make more innovative products, giving users better experiences and offer more features. Fitbit really has extensive knowledge when it comes to activity trackers, and the company is also known worldwide as one of the best in wearables.
When it comes to Vector, the company said that integrating into the Fitbit world will not impact customers who have Vector smartwatches. You will still be able to get the same warranty coverage and technical support you always have. Your watch will also work the same as it always has and the functionality would remain constant. The only bad part about those with an existing product is that both new software and hardware will not be added to those devices already out on the market and in the hands of consumers. This means that you will need to wait and purchase the new products if you want the integrated software and hardware from Fitbit.
Looking at Fitbit, just last month the company acquired Pebble for around $40 million. This really put into the stratosphere that Fitbit is going to keep investing in various software and hardware for new wearable products. The bad news about this though is that even though companies like Fitbit work with Android and iOS devices, the wearables market itself has been falling and in decline for a while now. The shipments of wearables went down over 50 percent in the last quarter, which does seem to indicate a negative outlook for the wearables market.
Even as the wearables market continues to decline, Fitbit is still the leader with over 23 percent share. This is actually an increase of about 2 percent from 2015, and part of that comes from the new Charge 2 that was released within that time frame. If you look at smartwatches, Apple Watch is the most popular and best-selling out there, but wearables in general, are 85 percent of the overall marketplace. This means that Apple actually ended up in fourth place, getting only 4.9 percent share.
Right now, we do not know what all will be coming for Vector now that it will be part of the Fitbit community, but you can expect more iOS and Android apps and full functionality coming to the new Vector products. It has not been announced yet when the first integrated product will hit the shelves, but it could be sometime later this year.