Narrative: Wearables are Struggling
Each narrative page (like this) has a page describing and evaluating the narrative, followed by all the posts on the site tagged with that narrative. Scroll down beyond the introduction to see the posts.
Fitbit acquires the Vector smart watch startup, as the wearable giant continues its roll-up | TechCrunch (Jan 10, 2017)
Consolidation continues in the smartwatch market. This piece is a little too effusive over the original technology – Vector wasn’t that special. But, like the Pebble deal, this is about Fitbit buying in IP and to some extent skills that should help it sharpen its next generation of wearables and smartwatches specifically. As the wearables market continues to be tough, we’ll see much more of this, and many of the smaller, struggling, vendors will be snapped up by the few remaining big names, with Fitbit likely one of the big acquirers.
Android Wear watches ready for prime time? ZTE thinks so – CNET (Jan 4, 2017)
The prevailing narrative around Android Wear – and it’s an accurate one – is that it’s flailing, and OEMs are largely backing away from it. ZTE offers a counterpoint here – it’s planning to launch a watch later in the year – but it’s the exception that proves the rule, as Roger’s piece here points out. I still think the best hope for Android Wear is really compelling first party hardware from Google, though that may also kill off what few OEM offerings remain.
via Android Wear watches ready for prime time? ZTE thinks so – CNET
Lessons From Fitbit’s Troubled Revenue Multiple – Mattermark (Dec 28, 2016)
The concluding line of Alex’s piece is “hardware is hard”, and that’s certainly becoming something of a narrative in its own right. But this is also a story about increasing market skepticism about wearables companies, and their potential to grow and generate profits. Fitbit has been the exception as an independent wearables-focused vendor, but I and others have questions about its ability to sustain its growth and profitability going forward.
via Lessons From Fitbit’s Troubled Revenue Multiple – Mattermark
There must have been a lot of Fitbit trackers under the Christmas tree – Recode (Dec 25, 2016)
Fitbit’s app hit the top of the App Store on Christmas Day, and stayed there on Boxing Day too. But this isn’t the first time that’s happened – the same thing happened last year too, and the ranking of the Fitbit app always spikes at Christmas. Given that sales have been up year on year consistently, though less dramatically than in the past, this is very much what you’d expect.
via There must have been a lot of Fitbit trackers under the Christmas tree – Recode
Jawbone says Fitbit is no longer seeking to block sales of its products – Recode (Dec 24, 2016)
Jawbone was one of the pioneers in the wearables space, but seems to be in free-fall at this point – it’s worth noting that the reason Fitbit is ending its opposition to Jawbone’s device sales is that Jawbone seems to be in so much trouble. It’s a cautionary tale that even the early big names in a new space don’t always do well over the long term – Pebble is another obvious example in the same space.
via Jawbone says Fitbit is no longer seeking to block sales of its products – Recode
The Inside Story Behind Pebble’s Demise (Dec 12, 2016)
Pebble was one of those rare combinations – an apparently popular brand that somehow nonetheless failed to translate that popularity into financial success. Its profile arguably far exceeded its achievements, and I was never a fan of its products. Its ultimate failure suggests few others were either. But this is an interesting recounting of what went wrong, particularly because Backchannel has been covering Pebble rather positively as part of a recent series.
via The Inside Story Behind Pebble’s Demise