It has been reported today from a source close to Intel that the company has won the auction for the smartwatch maker Basis Science and is set to pay between $100 – $150 million for the company.
Currently, Basis Science enjoys around 7 percent of the smartwatch market and produces smartwatches and fitness trackers, the Tech Crunch technology website reveals, who was contacted by the source close to the deal.
Intel’s Strategic Move into Wearable Technology
It’s not likely that Intel will start creating their own smartwatches, but by purchasing Basis Science, Intel acquires the team responsible for building one of the most powerful and comprehensive smartwatches to date. This acquisition is a strategic move for Intel, allowing them to leverage Basis Science’s expertise to create processors specifically designed for wearable devices. This could potentially lead to significant advancements in the performance and efficiency of wearable technology.
Intel has been making strides to diversify its portfolio and enter new markets. The acquisition of Basis Science aligns with Intel’s broader strategy to expand beyond traditional computing and into the burgeoning Internet of Things (IoT) market. Wearable technology is a key component of IoT, and having a foothold in this sector could provide Intel with new revenue streams and opportunities for innovation.
Competition and Market Dynamics
It was rumored that Google was also interested in purchasing the Basis Science company but offered less than $100 million for the company or perhaps they just passed on the bidding war. This indicates the competitive nature of the wearable technology market, where major tech companies are vying for dominance. Google’s interest in Basis Science suggests that they recognize the value of the technology and expertise that Basis Science brings to the table.
The smartwatch market is rapidly growing, with numerous players such as Apple, Samsung, and Fitbit competing for market share. Basis Science, with its 7 percent market share, has established itself as a significant player in this space. Their products are known for their advanced health and fitness tracking capabilities, which have garnered a loyal customer base. By acquiring Basis Science, Intel not only gains access to this technology but also to a segment of the market that is increasingly focused on health and wellness.
As more information comes to light over the coming weeks regarding the Basis Science acquisition, we will keep you updated as always. This acquisition could have far-reaching implications for the wearable technology market and could potentially lead to new innovations and products that enhance the user experience.
In conclusion, Intel’s acquisition of Basis Science is a strategic move that positions the company to capitalize on the growing wearable technology market. By integrating Basis Science’s expertise and technology, Intel can develop specialized processors that enhance the performance and efficiency of wearable devices. This acquisition also highlights the competitive nature of the market, with major tech companies recognizing the value of wearable technology and vying for dominance. As the market continues to evolve, it will be interesting to see how Intel leverages this acquisition to drive innovation and growth in the wearable technology sector.
Source: Tech Crunch
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