Alphabet’s GOOGL Google has announced the launch of the Pixel Watch 2, aiming to strengthen its position in the smartwatch market and enhance its fitness tracking capabilities.
A Smartwatch Designed for Performance and Fitness Tracking
The new Pixel Watch 2, powered by Fitbit, features a stylish circular design and boasts a battery life of 24 hours with the always-on display. It is equipped with an advanced quad-core processor for smooth performance.
With Fitbit-backed exercise tracking, the watch offers increased accuracy in capturing heart rates during strenuous activities, thanks to an upgraded heart rate sensor and tracking algorithm. It also includes a temperature sensor and a continuous electrodermal activity sensor to help users relax when they are stressed.
In addition, the Pixel Watch 2 offers a six-month free subscription to Fitbit Premium, which provides access to various exercise courses, Sleep Profile, and Readiness Score functionalities.
Priced at $349 and packed with features like automatic exercise detection, Safety Check, and integration with Gmail and Google Calendar, the Pixel Watch 2 is poised to attract a wide range of health-conscious consumers.
Growth Prospects in the Smartwatch Market
Alphabet’s efforts to expand its Pixel Watch series align well with the booming smartwatch and wearable markets. According to a Fortune Business Insights report, the global smartwatch market is projected to reach $29.31 billion in 2023 and grow to $77.22 billion by 2032, with a compound annual growth rate (CAGR) of 14.8% between 2023 and 2030.
Moreover, the wearable fitness tracker market is expected to reach $192 billion by 2030, with a CAGR of 17.5% between 2022 and 2030, according to Straits Research.
Considering these promising growth prospects, Alphabet is well-positioned to capture market share and inspire investor confidence. In fact, the company’s stock has outperformed the industry, with a YTD gain of 53.3% compared to the industry’s growth of 47.8%.
With the Pixel Watch series expected to contribute to the growth of Alphabet’s Google Services segment, the company’s revenue from this segment is estimated to grow by 5.3% to $267.05 billion in 2023.
Competition and Investor Outlook
Although Alphabet entered the smartwatch market relatively late, its growing efforts are likely to intensify competition with established players like Apple (AAPL) and Garmin (GRMN).
Apple’s dominance in the smartwatch market is fueled by the expanding Watch family, which offers features like Cycle Tracking, the Noise app, and Activity Trends. The company recently released watchOS 10 to further strengthen its product offerings.
Garmin, on the other hand, is positioning itself as a significant player in the wearable space with its expanding product portfolio for the Fitness and Outdoor business segment. The launch of vivoactive 5 and Venu 3 smartwatches showcases Garmin’s commitment to providing advanced health and fitness features.
Alphabet’s introduction of the Pixel Watch 2 underscores its determination to capture a larger share of the smartwatch market and meet the growing demand for fitness tracking devices. With the smartwatch and wearable markets poised for significant growth, Alphabet is well-positioned to capitalize on these opportunities and inspire investor confidence.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Nasdaq, Inc.