Technology hardware is a tough business. World-class companies like Nokia and Motorola quickly turned their favor to competitors such as Apple and Samsung. Google, which relies on online advertising, accounts for about 84% of revenue but has been chasing equipment business for years. Less than two years after the acquisition of the Motorola brand and a commitment to launch a series of powerful smartphones and other devices, the company sold it at a price that was less than a quarter of the amount paid in early 2014. It also acquired the design team of handset manufacturer HTC for $1.1 billion at the beginning of last year. Google on Friday announced the acquisition of fitness tracker Fitbit, which is the latest plan to become a larger hardware manufacturer, which is in line with analysts’ dream to climb the market share ladder through products such as Pixel smartphones, smart speakers and Nest thermostats. It is an unrealistic dream.
Analysts said the $2.1 billion acquisition would strengthen Google’s new health care business and provide Google with valuable data on the lives of people waking up and sleeping. Combined with its Pixel smartphone and Android phone software, Fitbit’s data provides users with a full day of near-complete images. Even if the company says it won’t sell ads because of the direct results of Fitbit trading, it will undoubtedly help inform Google’s core advertising business.
Although Google has spent more than a billion dollars on hardware development, the tech giant is still a small person in the field of gadgets. The number of Android smartphone operating the software is more than three times that of global Apple devices, but Google continues to promote the development of its Pixel brand mobile phone in the field of data collection, allowing customers to use the tool and operating system as if they own The Shopping Center. It is only a department store among them. Also, Fitbit said it has only 28 million active users, which means that about three-quarters of the 100 million devices sold have finally fallen into the dresser drawers. Its share price was close to $48 at its peak in July 2015 but fell to $4.31 before rumored a deal with Google.