That doesnt necessarily matter much to Google, which sees hardware mostly as a way to get people hooked on its software and artificial-intelligence services. Health and fitness wearables like the ones that made Fitbit famous are just one more avenue for Google to forge a presence in peoples lives.
Although Fitbit has been struggling recently against amped-up competition from Apple and Samsung, it still has one of the most recognizable and trusted brand names in wearable health tech, said eMarketer analyst Victoria Petrock.
Google is realizing that it needs to build products that are consistent and coherent, such as Apple does because it makes both hardware and software, said Forrester analyst Frank Gillett.
Googles last big acquisition-fueled push into a hot hardware space involved its takeover of smart-thermostat maker Nest.
But the push for Google, and increasingly other tech companies, is about the services they can sell along with the hardware.
The market could bust open once a federal Department of Health and Human Services initiative to give patients better control over their electronic health data becomes a reality.
The Fitbit deal, which is expected to close next year, will also give Google another big chunk of personal health and location data.
In the case of this acquisition, she said, all that data that Fitbit collected over the years that users may or may not have been aware was being collected about them now is going over to Google.
Original article