Besides some luxury brands like Apple, the smart wearable market has been ruthless over the past several years. Major players like Jawbone and Pebble have long exited the market while Fitbit is still surviving, but hugely struggling with low sales. Now fitness wearable maker, TomTom is also quitting the smartwatch market.
According to the company, it now wants to focus more on navigation technologies as well as the business market. However, it also said that it’s going to scale back its consumer sports segment, such as Spark product line featuring fitness tracking watches. This would result in nearly 136 layoffs.
No wonder, as back in July 2017, the company’s CEO Harold Goddijn stated that the company’s sales of wearables had “fallen short of expectations” and the company was thinking on strategic alternatives for the business. Even many TomTom’s executive for wearables unit, including marketing leader had departed before the admissions.
The company faced a tough competition as Apple added new fitness features to its wearable product line of smartwatches and Fitbit launched its more capable smartwatch. Apart from this, fashion brands such as Armani, Michael Kors and DKNY also rolled out latest luxury smartwatches in the market this year. These smartwatches run on Android Wear software from Google and has more attractive design and appearance than fitness.
Despite of no tough competition, the wearables market didn’t perform as expected by many analysts in the past. According to a recent survey, just a single consumer out of five owns some sort of smart wearables like a Fitbit Charge or Apple Watch with almost 80% of consumers, who don’t have such devices, being reluctant towards buying smart wearables in future.