The Smartwatch industry is one of the most competitive industries I have ever seen. The competition in the Smartwatch industry is so choking that any company that produces Smartwatches without learning to diversify could get choked out. Even companies that have diversified have also learnt never to throw too much into the Smartwatch niche, and I have learnt so much from Apple’s strategy. In my opinion, I will rather allow mobile phone makers enjoy the Smartwatch niche, as the mobile phone makers are the main market killers here. A new device may not support some of the older Smartwatches while other new devices may just start selecting Smartwatches.
Pioneer Smartwatch maker, Pebble is finding it financially tough, and that has led it to lay off 25% of its total workforce. The company has been dropping hints about possible financial challenges, and at the pace at which events have been unfolding, the financial crisis may have hit the Smartwatch firm real hard. The company had gone for debt funding, loans and investor cash in a bid to stay afloat, but there is still no visible change.
Eric Migicovsky, the CEO of Pebble was contacted by Tech Insider; he verified the layoffs, and he even added that his company had to borrow over $28million in the past eight months, but all to no avail. Migicovsky also added that the successful $20million Kickstarter campaign was not enough to salvage the situation for the company. He said, “We have carefully planned our products this year, we got some monies, but money has not been flowing well these days.”
2016 has been a really bad year for wearable device companies, even the champion of the industry FitBit had its stock battered this year, and that could lead to a very challenging year for wearable tech companies. Well, Smartwatches haven’t really come with this wow factor, they just come like a device anyone should get, and that could also be the reason behind its fall in the market.
In the paragraphs that started this article, Apple was one company I mentioned. Well, the tech company recently dropped the price of its Smartwatch to $299 all the way from $350, and that could just tell us that the company is also hit by the fall in sales, but it’s a big tech company, a reduction in prices drive much more sales than what it used to sell.
Apple is just one of Pebble’s competitors; we still have companies like Samsung, Motorola, LG and many other Chinese companies who are also competing for the same market. Pebble has some of the cheapest products around, and since entering the arena in 2012, it has had a pretty cool ride until now.
Well, things are moving fine in the Smartphone industry, I guess it’s primarily due to the fact that all the companies are always releasing devices with this, “wow” factor, and that’s a pretty cool reason why it’s surviving. Pebble has no other lucrative business to fall back on, but almost all its big competitors do, and that’s a reason they have managed to stay afloat amidst the downturn in fortune. Pebble just has to think of something fast, something different, and something that’s enough to bring it back to the top, because I hate thinking that another tech company may have to be bought by these ever hungry older siblings.