Fitbit, one of the most successful company when it comes to fitness trackers, decided to purchase the intellectual property and assets of Pebble. Pebble is considered to have a prosperous wearable startup. On February 22, the sales price was announced in a press release, giving up details about the financial outcomes of the fourth quarter of the company.
Back in December 2016, when Fitbit announced that it purchased Pebble, the terms of the deal were not revealed. However, those who were familiar with the share stated that the price was estimated at less than $40 million, at that time. Based on the data unveiled by the IDC, in the third quarter of 2016, the wearable market grew with 3% when Fitbit made the purchase.
The market data which was provided might have seemed disappointing in its outlook for the sector. The market researcher pointed out that the smart wearables are still trying to fight on the opposing team. In February 2015, Pebble was a crowdsourcing company which managed to raise over $20 million after selling its Pebble Time smartwatch.
The company argued that they received a considerable demand from their customers for the Pebble Steel watch and the standard smartwatch developed by them. Nevertheless, everything changed since 2012 when the company launched its first smartwatch. Nowadays, competition is around any corner, Pebble facing obstacles and competing with successful companies like Microsoft, Motorola, LG, Samsung, and Apple.
Pebble appears to be affected by the current climate of the market, announcing that in March it will lay off about 25% of its workers. However, we need to remember why Pebble was always seen as a revolutionary smartwatch developer. Some might say that it is all about the reasonable prices which attracted so many customers. Back in December, the company sold its assets to Fitbit, and it was shut down.
However, back in the times when Pebble was only a concept for its founder Eric Migicovsky, it got everyone’s attention by registering those crowdfunding records on Kickstarter. Its first campaign managed to surpass its primary goal which was set before, raising more than $13 million. Nevertheless, the second generation of smartwatches brought them a profit twice as big as the first campaign. All this profit combined obtained by the company is more than Fitbit offered for to pay for ownership.
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