WEBVTT - The FitBit Story

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<v Speaker 1>Get in touch with technology with tech Stuff from how

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<v Speaker 1>stuff Works dot com. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I am your host, senior writer Jonathan Strickland with how

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<v Speaker 1>stuff Works dot Com and on many episodes of tech Stuff,

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<v Speaker 1>I like to look at companies that are decades old,

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<v Speaker 1>or even more than a century old in some cases.

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<v Speaker 1>But this time I'm going to take a look at

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<v Speaker 1>a company that just turned ten not too long ago,

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<v Speaker 1>and I'm talking about Fitbit. And really I'm gonna focus

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<v Speaker 1>both on the company itself and the technology it creates.

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<v Speaker 1>So you're gonna get both kind of a history and

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<v Speaker 1>evolution of the company, but also how does that technology

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<v Speaker 1>actually work. It's kind of marrying two different styles of

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<v Speaker 1>tech stuff in one delicious tech stuff package of goodness.

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<v Speaker 1>So this story begins back in two thousand seven, and

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<v Speaker 1>that is when two guys, one named James Park and

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<v Speaker 1>one named Eric Friedman, decided that they were going to

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<v Speaker 1>launch a company with the intent to produce fitness trackers,

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<v Speaker 1>essentially a pedometer on steroids, something that could give lots

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<v Speaker 1>of feedback to a person who was interested in getting fit.

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<v Speaker 1>But to be fair, all stories really have more of

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<v Speaker 1>a preamble than that, right, it's not just hey, today,

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<v Speaker 1>we decided to make a company. You have to figure out, well,

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<v Speaker 1>what led up to that? Well, James Park attended Harvard.

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<v Speaker 1>He was studying computer science, but he dropped out. He

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<v Speaker 1>didn't actually graduate from Harvard, he didn't earn a degree there.

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<v Speaker 1>After dropping out, he worked for the company Morgan Stanley

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<v Speaker 1>and he worked there for about a year. And then

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<v Speaker 1>Eric Friedman, he was actually at Yale. He got a

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<v Speaker 1>graduate and postgraduate degrees actually from Yale. He was studying

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<v Speaker 1>computer science. They are, and the two of them co

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<v Speaker 1>founded a company called Epis Technologies, and I'm guessing you

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<v Speaker 1>probably never heard of it because it didn't last very long.

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<v Speaker 1>Their focus was to create products to facilitate business to

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<v Speaker 1>business transactions. So, in other words, um, your ordinary consumers

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<v Speaker 1>or customers would never really come into contact with this

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<v Speaker 1>particular company. It wasn't marketing stuff for the average consumer.

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<v Speaker 1>This was for big companies and the transactions they make

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<v Speaker 1>with each other. Very different world than just going to

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<v Speaker 1>a store and buying a product. Right. Venture capitalists invested

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<v Speaker 1>a couple of million dollars in this technology. However, the

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<v Speaker 1>company just never found its footing. It eventually failed and

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<v Speaker 1>Parks said that he felt that his inexperience in large

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<v Speaker 1>part contributed to that failure, but that the failure itself

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<v Speaker 1>served as a very valuable learning experience for him and

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<v Speaker 1>for Freedom, and that they were able to take that

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<v Speaker 1>negative experience and learn from it and attempt something new.

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<v Speaker 1>So there might have been some valuable but harsh lessons

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<v Speaker 1>learned at that point. Anyway, the two of them and

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<v Speaker 1>a couple of other alumni from a PSC Technologies decided

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<v Speaker 1>to go on an entirely different direction with a brand

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<v Speaker 1>new company. They created a new venture called wind Up Labs,

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<v Speaker 1>and this time they were taking aim at online photo

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<v Speaker 1>editing and sharing using peer to peer technology. So this

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<v Speaker 1>happened around two thousand two. UH. They got to work

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<v Speaker 1>developing the tools you would need to do editing work

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<v Speaker 1>online and to use this peer to peer technology to

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<v Speaker 1>facilitate it, and it was successful enough for larger companies

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<v Speaker 1>to actually take notice of them. And one of those

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<v Speaker 1>larger companies was c net. So you're probably familiar with SEEN.

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<v Speaker 1>They have a lot of different UH branches. The one

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<v Speaker 1>that I'm familiar with is their website with their reviews

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<v Speaker 1>and their technology news. I know a couple of people

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<v Speaker 1>who work there, but they also do other stuff as well,

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<v Speaker 1>and one of the things they wanted to invest in

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<v Speaker 1>was this photo editing suite, so they acquired wind Up Labs.

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<v Speaker 1>They actually made a bid and then took ownership of

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<v Speaker 1>the company, and both Park and Freedman went on to

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<v Speaker 1>work for c net uh, becoming heads of various departments

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<v Speaker 1>within c NEET, and they became further entrenched in the

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<v Speaker 1>world of technology. Flash forward to two thousand and six,

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<v Speaker 1>another big company released a brand new product that got

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<v Speaker 1>both Park and Freedman kind of excited, something that they

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<v Speaker 1>had not really seen before that they felt had a

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<v Speaker 1>lot of value. That company was a little company called Nintendo,

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<v Speaker 1>and the product was the Wei video game console. Really,

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<v Speaker 1>they were very interested in the Wei controllers, the Wei

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<v Speaker 1>motes because they had all these motion sensors in them.

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<v Speaker 1>We were now entering into an era where these motion

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<v Speaker 1>sensors were getting very small and relatively inexpensive, so you

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<v Speaker 1>could incorporate them into totally new types of technology. You know,

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<v Speaker 1>before they were larger, they were more expensive, they were

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<v Speaker 1>limited in what you can do with them. But now

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<v Speaker 1>because manufacturing processes had improved and you're looking at the

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<v Speaker 1>economies of scale. They were suddenly a component that you

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<v Speaker 1>could fit another stuff. And we started seeing this across

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<v Speaker 1>all sorts of different products, including smartphones. We started seeing

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<v Speaker 1>those kind of technologies incorporated there. Well. They thought that

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<v Speaker 1>this we mote motion sensor technology was really revolutionary. But

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<v Speaker 1>they thought, this is a home console. What if we

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<v Speaker 1>could take this capability and put it into a more

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<v Speaker 1>portable device, and maybe it has a different aim and

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<v Speaker 1>video games. And that got them thinking, and eventually they

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<v Speaker 1>came to this idea of a fitness tracker that now

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<v Speaker 1>that you could get accelerometers and other types of sensors

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<v Speaker 1>to a small enough form factor and make them cheap enough,

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<v Speaker 1>you could pair them with some microprocessors and have a

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<v Speaker 1>really robust activity tracker. So they decided that this would

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<v Speaker 1>leave pedometers in the dust. It would set a new market,

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<v Speaker 1>and they left c Net in two thousand seven to

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<v Speaker 1>form a new company and they called it Fitbit. Now

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<v Speaker 1>that when they made this company, they didn't have any

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<v Speaker 1>products to show off yet. They had not built anything,

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<v Speaker 1>they hadn't designed anything. They just had an idea. They

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<v Speaker 1>invested their own money, and they also had friends and

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<v Speaker 1>family and and former co workers and former clients also

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<v Speaker 1>invested in their early start up, and they raised about

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<v Speaker 1>four hundred thousand dollars, which originally they thought would be

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<v Speaker 1>enough to get them to the point where they could

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<v Speaker 1>bringing a product to market. Later fundraising efforts got them

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<v Speaker 1>further once they realized that four thousand dollars was not

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<v Speaker 1>going to be enough, But that was a little bit

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<v Speaker 1>further down the line. They had a long way to

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<v Speaker 1>go before they actually had a physical product they could

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<v Speaker 1>show off. Their ideas. Sound sounded really good. They were

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<v Speaker 1>really sound ideas, but neither co founder had any experience

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<v Speaker 1>in the manufacturing world, so neither of them knew anything

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<v Speaker 1>about product development or actually taking an idea and making

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<v Speaker 1>a physical thing out of it, and as it turns out,

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<v Speaker 1>that's really hard to do. They had to make a

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<v Speaker 1>working prototype in order to show it off to some

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<v Speaker 1>potential investors and also potential customers. So the original fitbit

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<v Speaker 1>prototype didn't look very special. It was some circuitry in

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<v Speaker 1>a little wooden box. I think it was even made

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<v Speaker 1>of balsa would The idea seemed really special, though, and

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<v Speaker 1>Park and Freedmen were determined to make it work, so

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<v Speaker 1>they needed to develop the product that could be lightweight

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<v Speaker 1>because you wanted to be able to wear it on

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<v Speaker 1>your body. They wanted it to be very energy efficient

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<v Speaker 1>because you don't want to have to recharge it constantly.

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<v Speaker 1>They wanted to aim for a price point of around

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<v Speaker 1>in the US dollars. That is, the original fitbit tracker

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<v Speaker 1>that they eventually developed was a clip on device. You

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<v Speaker 1>could clip it on pocket or a lot of the

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<v Speaker 1>ladies would clip it on a bra strap or something

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<v Speaker 1>along those lines. Um And it was kind of like

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<v Speaker 1>a high tech clothes pin almost. So it had a

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<v Speaker 1>very small, oh lead display, uh you know, organic led display,

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<v Speaker 1>and that could show you how many steps you took.

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<v Speaker 1>Give me a little indicator had little footprints on it too.

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<v Speaker 1>I'm looking at the camera that I'm talking to. I'm

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<v Speaker 1>live streaming this particular episode, and I'm acting like it's

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<v Speaker 1>actually another person right there. So that's interesting. But at

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<v Speaker 1>any rate, the this little screen and show you the

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<v Speaker 1>number of steps you took. And it also had a

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<v Speaker 1>Bluetooth low energy transmitter incorporated in the device in order

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<v Speaker 1>to send information to a sinking station sinking as in synchronization,

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<v Speaker 1>not as in sinking under the water, and you would

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<v Speaker 1>plug that into a computer, so your device would sink

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<v Speaker 1>whenever you got within a certain range uh and it

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<v Speaker 1>would do so multiple times over the course of a day,

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<v Speaker 1>so maybe every like fifteen to twenty minutes it would update,

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<v Speaker 1>and then you could view stats on your computer screen.

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<v Speaker 1>Later on, with smartphones became ubiquitous and a lot of

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<v Speaker 1>apps were developed for the fitbit, you could offload that

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<v Speaker 1>to a smartphone and just use a Bluetooth connection between

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<v Speaker 1>a device and your smartphone to send that information. But

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<v Speaker 1>either way, the point was you could then view more

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<v Speaker 1>robust information on a dashboard, either on your computer or

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<v Speaker 1>later on on your smartphone, and it would give you

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<v Speaker 1>a little bit better of an idea of of what

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<v Speaker 1>your activity actually meant. Because a predometer can tell you

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<v Speaker 1>roughly how many steps you took, but fitbits value proposition

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<v Speaker 1>was that it could do more than that. So while

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<v Speaker 1>the fitbit tracker could estimate the number of steps you

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<v Speaker 1>were taking, that one of the things that this dashboard

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<v Speaker 1>could do is estimate how many calories you were burning

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<v Speaker 1>based upon the nature and duration of the movement you

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<v Speaker 1>were making, and it did this by collecting information from

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<v Speaker 1>a three axis accelerometer and more on that in a

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<v Speaker 1>little bit. I'll actually explain how three axes accelerometers work. Really,

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<v Speaker 1>I should say just a three axis accelerometers work. And

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<v Speaker 1>this was really what was compelling about their approach was

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<v Speaker 1>that wasn't just a physical product that they were marketing.

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<v Speaker 1>It was this whole marriage between software and hardware that

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<v Speaker 1>together made it a product that people might want and

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<v Speaker 1>would find compelling uses for. Like this whole uh new

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<v Speaker 1>industry of activity tracking, quantifying your activity in a way

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<v Speaker 1>that makes sense, so that you could perhaps set goals

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<v Speaker 1>saying I want to hit a certain milestone today, or

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<v Speaker 1>you could just see what trends were for a week

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<v Speaker 1>and maybe there were things that you needed to adjust.

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<v Speaker 1>It was a new idea really that you would be

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<v Speaker 1>able to gather that much information and have it presented

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<v Speaker 1>to you in a way that made sense, and that,

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<v Speaker 1>I think, more than just the tracker itself, is what

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<v Speaker 1>got people really interested. So let's talk about how this

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<v Speaker 1>hardware works. Will begin with what is arguably the most

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<v Speaker 1>important element in fitbit technology, which is the three axis accelerometer. Uh.

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<v Speaker 1>There are of course a lot of other components inside fitbits,

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<v Speaker 1>and it also depends upon which fit bit model you're

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<v Speaker 1>talking about because Fitbit offers a ton of different products,

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<v Speaker 1>and some of them are more simple, and some of

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<v Speaker 1>them are have all the bells and whistles. Figuratively speaking,

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<v Speaker 1>I don't think any of Fitbit's current products actually have

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<v Speaker 1>physical bells or whistles, So I apologize if I got

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<v Speaker 1>your hopes up. So, the three axis accelerometer is an

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<v Speaker 1>interesting thing. Uh It It detects changes in motion. That's

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<v Speaker 1>what accelerometers do. They detect changes in acceleration, and acceleration

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<v Speaker 1>is a vector quantity, right, It has two components. It

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<v Speaker 1>has a direction, and it has a magnitude. So an

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<v Speaker 1>accelerometer can detect a change in the direction of motion

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<v Speaker 1>or a change in the magnitude of motion, and a

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<v Speaker 1>single axis accelerometer can only tell the difference in a

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<v Speaker 1>change in direction along one axis. So upper down is

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<v Speaker 1>an axis. If you have a single access accelerometer and

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<v Speaker 1>it's oriented in the up down position, it can only

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<v Speaker 1>detect changes in direction that that an impact up or down.

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<v Speaker 1>It cannot detect left or right. So uh, three axis

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<v Speaker 1>means that there are three axis of directions that you're

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<v Speaker 1>talking about, essentially up, down, left, right, and forward backward.

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<v Speaker 1>So you can detect changes in motion and all of

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<v Speaker 1>these different axes. The accelerometers inside fitbits are specific types.

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<v Speaker 1>They're called MEMS accelerometers m E m S, and that's

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<v Speaker 1>actually an acronym. It stands for micro electro mechanical systems.

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<v Speaker 1>And this is the fascinating thing to me. These are

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<v Speaker 1>very very tiny. They're they're like, it looks like a

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<v Speaker 1>regular little micro chip, like a microprocessor chip, but they

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<v Speaker 1>actually have tiny moving parts inside of them. The accelerometers

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<v Speaker 1>are actually based upon physical motion. Uh. And the name

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<v Speaker 1>tells you all the basics you need to know. Micro

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<v Speaker 1>means we're talking wicked small here. Um, that means they're tiny.

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<v Speaker 1>If you're not from Boston, you don't know what wicked

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<v Speaker 1>small means. It means tiny. Electro of course, means that

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<v Speaker 1>you have some sort of electrical or electro magnetic component

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<v Speaker 1>to it. And mechanical tells you that, yeah, we're talking

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<v Speaker 1>about moving parts here. It's just not you know, not

0:14:19.960 --> 0:14:23.720
<v Speaker 1>just electrons zipping around. They're actually tiny little movement moving

0:14:23.760 --> 0:14:28.040
<v Speaker 1>elements to this thing. So let's start with a simple

0:14:28.080 --> 0:14:32.880
<v Speaker 1>single access accelerometer. And again by access, we're talking about

0:14:32.920 --> 0:14:37.240
<v Speaker 1>a specific set of directions. Um, this is all with

0:14:37.320 --> 0:14:41.000
<v Speaker 1>respect to the accelerometers orientation. So let's say we've got

0:14:41.000 --> 0:14:45.440
<v Speaker 1>a macro sized single access accelerometer sitting on the table.

0:14:45.480 --> 0:14:50.120
<v Speaker 1>This is easier to envision. It can measure accelerator accelerative

0:14:50.160 --> 0:14:52.480
<v Speaker 1>forces that are going up or down, but not left

0:14:52.560 --> 0:14:56.080
<v Speaker 1>or right, or forward or backward, because it's again single access.

0:14:56.120 --> 0:14:59.800
<v Speaker 1>But the way it works is that you've got a

0:14:59.840 --> 0:15:03.120
<v Speaker 1>b ace, which in the micro scale we would call

0:15:03.160 --> 0:15:06.520
<v Speaker 1>a substrate. We'll just say it's the surface of a

0:15:06.560 --> 0:15:10.680
<v Speaker 1>table in this case. Then you would have a spring,

0:15:11.280 --> 0:15:14.200
<v Speaker 1>a pretty stiff spring, not not like a slinky, but

0:15:14.240 --> 0:15:17.080
<v Speaker 1>more like maybe something you would find in a shock absorber.

0:15:18.080 --> 0:15:21.480
<v Speaker 1>Attached to the spring, you would have some sort of

0:15:21.960 --> 0:15:28.600
<v Speaker 1>element that would have flat protrusions extending from the sides.

0:15:28.800 --> 0:15:32.960
<v Speaker 1>So imagine like a cylinder, and along the length of

0:15:32.960 --> 0:15:36.600
<v Speaker 1>the cylinder you've got these flat protrusions their plates, is

0:15:36.600 --> 0:15:39.440
<v Speaker 1>what they're called. These are movable plates because they're on

0:15:39.480 --> 0:15:42.560
<v Speaker 1>the cylinder, which itself is on a spring. So an

0:15:42.600 --> 0:15:45.520
<v Speaker 1>emotion on the spring will make the cylinder go up

0:15:45.520 --> 0:15:47.880
<v Speaker 1>and down, which means the plates, which are attached to

0:15:47.880 --> 0:15:53.000
<v Speaker 1>the cylinder will also go up or down. Now, around

0:15:53.000 --> 0:15:57.440
<v Speaker 1>this cylinder You've got some fixed plates mounted to a

0:15:57.560 --> 0:16:00.840
<v Speaker 1>steady frame, so the frame does not move, the frame

0:16:00.920 --> 0:16:06.640
<v Speaker 1>stays stable, but those plates sandwich the moving plates. So

0:16:06.680 --> 0:16:11.800
<v Speaker 1>a moving plate would slide between two fixed plates, and

0:16:11.840 --> 0:16:16.520
<v Speaker 1>then you apply of different voltages to each pair of

0:16:16.560 --> 0:16:20.720
<v Speaker 1>fixed plates, so you've got a difference in voltage. They're

0:16:20.800 --> 0:16:24.080
<v Speaker 1>essentially capacitors in this case, they're building up a voltage

0:16:24.080 --> 0:16:27.600
<v Speaker 1>differential between two plates. You've got this moving plate that's

0:16:27.680 --> 0:16:31.560
<v Speaker 1>in between the two. Any motion that you transfer to

0:16:31.600 --> 0:16:34.400
<v Speaker 1>that spring will they be transferred to the cylinder, and

0:16:34.440 --> 0:16:37.560
<v Speaker 1>thus the moving plates they'll move up and down. As

0:16:37.560 --> 0:16:39.680
<v Speaker 1>they move up and down, that moving plate is going

0:16:39.720 --> 0:16:42.920
<v Speaker 1>to get closer to the top plate, and then further

0:16:42.960 --> 0:16:45.760
<v Speaker 1>away and closer to the bottom plate, and then further away.

0:16:45.800 --> 0:16:48.160
<v Speaker 1>So as it moves up and down and gets closer

0:16:48.160 --> 0:16:52.440
<v Speaker 1>and further away from these these fixed plates, it actually

0:16:52.480 --> 0:16:57.960
<v Speaker 1>affects the capacitive value between the two. This difference in

0:16:58.000 --> 0:17:03.800
<v Speaker 1>capacity value is is interpreted by the accelerometer as a

0:17:03.920 --> 0:17:08.280
<v Speaker 1>change in acceleration. And I realized that this is kind

0:17:08.280 --> 0:17:12.160
<v Speaker 1>of a difficult thing to to just imagine that. I'm

0:17:12.200 --> 0:17:15.160
<v Speaker 1>explaining it as best I can, but without the element

0:17:15.320 --> 0:17:20.280
<v Speaker 1>of visuals. It is pretty tricky. So maybe what I

0:17:20.320 --> 0:17:26.880
<v Speaker 1>can do is, um, I'll explain it analogy. I love analogies.

0:17:27.040 --> 0:17:29.840
<v Speaker 1>And uh, it was lunchtime not too long ago here

0:17:29.920 --> 0:17:33.440
<v Speaker 1>in Atlanta, Georgia. So I'm going to talk about sandwich.

0:17:34.359 --> 0:17:38.360
<v Speaker 1>Imagine a really delicious veggie burger, and they do exist.

0:17:39.280 --> 0:17:41.119
<v Speaker 1>It's easy to find a bad one, but trust me,

0:17:41.160 --> 0:17:43.600
<v Speaker 1>the good ones are out there too. Now, imagine you've

0:17:43.640 --> 0:17:48.760
<v Speaker 1>got a bottom bun sitting on a table, hovering, as

0:17:48.800 --> 0:17:51.840
<v Speaker 1>if by magic. About two inches above that bun is

0:17:51.880 --> 0:17:55.600
<v Speaker 1>a veggie patty, and it is in fact delicious, but

0:17:55.680 --> 0:17:57.639
<v Speaker 1>you can't eat it yet because I need it for

0:17:57.680 --> 0:18:02.359
<v Speaker 1>this analogy. Hovering about two inches above that is the

0:18:02.400 --> 0:18:06.000
<v Speaker 1>top bun. So you've got some space between the top bun,

0:18:06.359 --> 0:18:09.280
<v Speaker 1>the veggie patty, and the bottom bun. Now, the two

0:18:09.280 --> 0:18:13.800
<v Speaker 1>buns are fixed in space and time. Not even the

0:18:13.920 --> 0:18:18.760
<v Speaker 1>Juggernaut himself could move the two buns. They are going

0:18:18.800 --> 0:18:22.920
<v Speaker 1>to remain in the positions they are in until the

0:18:23.040 --> 0:18:29.840
<v Speaker 1>universe itself burns out. But the veggie patty can move

0:18:30.000 --> 0:18:33.560
<v Speaker 1>up and down. It has that freedom of movement. So

0:18:33.600 --> 0:18:36.880
<v Speaker 1>any motion to the table is going to make that

0:18:36.960 --> 0:18:40.280
<v Speaker 1>veggie Patty either get closer to the top bun or

0:18:40.359 --> 0:18:43.520
<v Speaker 1>the bottom bun. And that's what I'm talking about. It's

0:18:43.600 --> 0:18:47.080
<v Speaker 1>it's very similar with an accelerometer, except instead of veggie burger,

0:18:47.520 --> 0:18:51.520
<v Speaker 1>you've got these moving plates and fixed plates, and instead

0:18:51.560 --> 0:18:54.960
<v Speaker 1>of deliciousness, you have a capacitive value based upon a

0:18:55.040 --> 0:19:00.320
<v Speaker 1>voltage differential between two plates. Simple right. Anyway, you have

0:19:00.400 --> 0:19:05.600
<v Speaker 1>processors that can take that data, that change in the

0:19:05.680 --> 0:19:10.240
<v Speaker 1>capacitive value and interpret it as acceleration, and based upon

0:19:10.400 --> 0:19:14.880
<v Speaker 1>the speed of the change and the magnitude of the change,

0:19:15.000 --> 0:19:18.200
<v Speaker 1>it can make some guesses as to how much accelerative

0:19:18.280 --> 0:19:23.800
<v Speaker 1>force is being applied. So if you've ever used a

0:19:23.840 --> 0:19:26.800
<v Speaker 1>fitness tracker that could tell the difference between when you

0:19:26.840 --> 0:19:29.720
<v Speaker 1>were walking versus when you might be typing on a

0:19:29.800 --> 0:19:33.360
<v Speaker 1>keyboard or when you're jogging down the street, it's because

0:19:33.440 --> 0:19:38.560
<v Speaker 1>the accelerometer is able to interpret these differences and then

0:19:38.920 --> 0:19:41.800
<v Speaker 1>present that information in a way that makes sense to you.

0:19:42.800 --> 0:19:45.320
<v Speaker 1>And it's all about just looking at the math of

0:19:45.359 --> 0:19:48.119
<v Speaker 1>the difference of that capacitive value, which to me is

0:19:48.800 --> 0:19:51.600
<v Speaker 1>it's almost akin to magic. I'm about to go all

0:19:51.720 --> 0:19:57.480
<v Speaker 1>Arthur C. Clark in here. So that's a basic single

0:19:57.560 --> 0:20:00.960
<v Speaker 1>access accelerometer, and the same thing is happening inside the

0:20:01.000 --> 0:20:03.480
<v Speaker 1>sensors on the fitbit, only we're talking about a much

0:20:03.600 --> 0:20:07.600
<v Speaker 1>much much smaller accelerometer, right, We're talking micro level, not

0:20:07.920 --> 0:20:13.200
<v Speaker 1>macro level. And again, they don't use single axis accelerometers

0:20:13.200 --> 0:20:16.119
<v Speaker 1>because that would only detect a change in acceleration along

0:20:16.240 --> 0:20:20.240
<v Speaker 1>one axis. They use three axis accelerometers. So how are

0:20:19.960 --> 0:20:23.280
<v Speaker 1>those different, Well, they're not different. You just get three

0:20:23.320 --> 0:20:27.040
<v Speaker 1>single axis accelerometers and then you orient them so that

0:20:27.119 --> 0:20:30.240
<v Speaker 1>they have these ninety degree changes, so that you've got

0:20:30.680 --> 0:20:33.960
<v Speaker 1>one that's aligned up and down, one that's the line

0:20:34.040 --> 0:20:37.000
<v Speaker 1>left and right, and one that's aligned front to back,

0:20:37.480 --> 0:20:39.800
<v Speaker 1>and they're all next to each other. And it doesn't

0:20:39.800 --> 0:20:42.040
<v Speaker 1>you know, they're not always going to be. This is vertical,

0:20:42.080 --> 0:20:45.200
<v Speaker 1>this is horizontal, and this is your your Z axis

0:20:45.760 --> 0:20:50.280
<v Speaker 1>because it all depends upon the orientation of the fitbit itself. Right,

0:20:50.359 --> 0:20:52.280
<v Speaker 1>Sometimes i might have my arm way up in the air,

0:20:52.440 --> 0:20:55.000
<v Speaker 1>waving it around as if in fact I just did

0:20:55.040 --> 0:20:59.200
<v Speaker 1>not care. But other times I'm gonna be just hauling

0:20:59.800 --> 0:21:02.399
<v Speaker 1>as fast as I can down the highway while the

0:21:02.440 --> 0:21:06.000
<v Speaker 1>T one thousand is chasing me down. And the important

0:21:06.000 --> 0:21:09.639
<v Speaker 1>thing is these accelerometers have to uh, detect that motion

0:21:09.680 --> 0:21:12.640
<v Speaker 1>no matter what orientation my arm might be in. That's

0:21:12.640 --> 0:21:14.520
<v Speaker 1>why you go with the three axis. It's much more

0:21:14.560 --> 0:21:20.040
<v Speaker 1>accurate than a single access accelerometer. And I love the

0:21:20.080 --> 0:21:23.560
<v Speaker 1>fact that this technology is built on the basis of

0:21:23.600 --> 0:21:26.000
<v Speaker 1>motion because it means that you yourself can go out

0:21:26.040 --> 0:21:29.080
<v Speaker 1>and build an accelerometer if you want to. You can

0:21:29.080 --> 0:21:32.080
<v Speaker 1>build a simple one which would really just give you

0:21:32.119 --> 0:21:35.400
<v Speaker 1>an indication of changes to acceleration based upon the movement

0:21:35.680 --> 0:21:38.720
<v Speaker 1>of a mass at the end of a spring. But

0:21:38.800 --> 0:21:41.480
<v Speaker 1>that's technically kind of an accelerometer doesn't really give you

0:21:41.520 --> 0:21:44.160
<v Speaker 1>any value, So I would argue that perhaps you can't

0:21:44.200 --> 0:21:46.880
<v Speaker 1>really call an accelerometer. It's almost more of a seizmometer.

0:21:47.280 --> 0:21:50.240
<v Speaker 1>But it's still kind of cool. Uh. But yeah, with

0:21:50.240 --> 0:21:52.400
<v Speaker 1>with some springs and a few other pieces of equipment,

0:21:52.400 --> 0:21:55.520
<v Speaker 1>you could make a macro sized accelerometer that works on

0:21:55.560 --> 0:21:58.960
<v Speaker 1>the exact same principle as these very tiny ones that

0:21:59.040 --> 0:22:02.440
<v Speaker 1>you find in fitbit, And then you can marvel and

0:22:02.520 --> 0:22:04.760
<v Speaker 1>the fact that it still works at the micro scale.

0:22:06.320 --> 0:22:12.440
<v Speaker 1>Go ahead, marvel. You can actually marvel all the way

0:22:12.480 --> 0:22:15.480
<v Speaker 1>through the next bit because it's time to take a

0:22:15.560 --> 0:22:27.560
<v Speaker 1>quick break to thank our sponsor. All right, so let's

0:22:27.560 --> 0:22:31.520
<v Speaker 1>talk about other stuff with the fitbit. You know, other

0:22:31.600 --> 0:22:37.600
<v Speaker 1>elements in UH in the fitbit handle actual processing of information.

0:22:37.880 --> 0:22:41.040
<v Speaker 1>So you've got the sensor that's gathering information, the the

0:22:41.040 --> 0:22:44.919
<v Speaker 1>three axis accelerometer. It's it's pulling info in, but that

0:22:44.960 --> 0:22:47.720
<v Speaker 1>needs to be processed, right, It's just kind of raw data.

0:22:47.760 --> 0:22:51.439
<v Speaker 1>It doesn't really have any meaning to it. So we

0:22:51.560 --> 0:22:54.520
<v Speaker 1>then have the other processors to kind of turn that

0:22:54.600 --> 0:22:59.520
<v Speaker 1>into more interesting information that has relevance to us as users.

0:23:00.359 --> 0:23:04.679
<v Speaker 1>Then you've got the low energy Bluetooth transmitter, and that

0:23:04.840 --> 0:23:08.520
<v Speaker 1>is what allows the the fitbit to communicate with other

0:23:08.560 --> 0:23:14.160
<v Speaker 1>devices like smartphones and sinking stations again synchronization stations UH.

0:23:14.200 --> 0:23:18.120
<v Speaker 1>And they use low energy bluetooth because as you would imagine,

0:23:18.200 --> 0:23:20.639
<v Speaker 1>it doesn't require that much energy to operate. It's sending

0:23:20.800 --> 0:23:24.000
<v Speaker 1>very small amounts of data, so it's not like it's

0:23:24.040 --> 0:23:27.919
<v Speaker 1>having to transmit a constant stream of information. It's just

0:23:28.280 --> 0:23:31.400
<v Speaker 1>little packets of information, so it doesn't take a whole

0:23:31.400 --> 0:23:33.840
<v Speaker 1>lot of power to do it, and that means that

0:23:33.920 --> 0:23:36.240
<v Speaker 1>it's less of a drain on battery life because that's

0:23:36.240 --> 0:23:39.280
<v Speaker 1>really important with an activity tracker. You don't. You don't

0:23:39.320 --> 0:23:40.920
<v Speaker 1>want to have to take it off at the end

0:23:40.920 --> 0:23:44.560
<v Speaker 1>of every day and recharge it, especially one like the

0:23:44.560 --> 0:23:47.800
<v Speaker 1>fitbit that's supposed to also track how well you sleep.

0:23:48.440 --> 0:23:51.080
<v Speaker 1>If you're supposed to wear it essentially twenty four hours

0:23:51.200 --> 0:23:54.680
<v Speaker 1>until you actually absolutely have to charge it, you want

0:23:54.680 --> 0:23:56.960
<v Speaker 1>to maximize that battery life. So that was one way

0:23:57.000 --> 0:23:59.800
<v Speaker 1>they could do it was using this low energy Bluetooth approach.

0:24:00.040 --> 0:24:02.280
<v Speaker 1>And I've talked about low too, low energy Bluetooth and

0:24:02.400 --> 0:24:04.600
<v Speaker 1>other podcasts, So if you want to go back to

0:24:05.240 --> 0:24:08.800
<v Speaker 1>Tech Stuff archives, you can find me explaining that technology

0:24:08.800 --> 0:24:13.080
<v Speaker 1>a little bit more. These days, Uh, you know, you're

0:24:13.160 --> 0:24:16.520
<v Speaker 1>more likely to use a smartphone than a synchronize kind

0:24:16.520 --> 0:24:19.840
<v Speaker 1>of station type device that plugs in via USB to

0:24:19.920 --> 0:24:23.199
<v Speaker 1>your computer. You might still do that. I did that

0:24:23.240 --> 0:24:25.919
<v Speaker 1>with my old fitbit, but these days now I just

0:24:26.040 --> 0:24:29.640
<v Speaker 1>used my smartphone essentially is the computer in my pocket.

0:24:29.760 --> 0:24:34.960
<v Speaker 1>So um. But when they first launched Fitbit, smartphones were

0:24:35.000 --> 0:24:37.840
<v Speaker 1>not really a big thing yet. Remember they got together

0:24:37.920 --> 0:24:40.080
<v Speaker 1>to work on Fitbit in two thousand seven. That's the

0:24:40.160 --> 0:24:44.600
<v Speaker 1>same year that Apple debuted the iPhone. So to me,

0:24:44.800 --> 0:24:47.560
<v Speaker 1>that is the beginning of the era of the smartphone age.

0:24:47.600 --> 0:24:50.480
<v Speaker 1>Even though there were other phones that could technically be

0:24:50.520 --> 0:24:54.000
<v Speaker 1>called smartphones before the iPhone, it was the iPhone that

0:24:54.080 --> 0:24:58.399
<v Speaker 1>captured the public imagination so that people besides just the

0:24:58.400 --> 0:25:01.879
<v Speaker 1>the tech geeks like my elf, sat up and said, Oh,

0:25:01.920 --> 0:25:05.320
<v Speaker 1>that's pretty cool. I want one of those now. It

0:25:05.359 --> 0:25:08.359
<v Speaker 1>was actually that that bluetooth transmitter that gave them some

0:25:08.480 --> 0:25:12.480
<v Speaker 1>early problems. If you read review our interviews with the

0:25:12.520 --> 0:25:16.200
<v Speaker 1>founders of Fitbit, they'd say that their company nearly died

0:25:16.520 --> 0:25:22.080
<v Speaker 1>seven times. They had seven different crises that almost killed

0:25:22.119 --> 0:25:25.280
<v Speaker 1>off their company in that that first year, and one

0:25:25.320 --> 0:25:27.320
<v Speaker 1>of them was they found that they were having this

0:25:27.400 --> 0:25:31.359
<v Speaker 1>transmitter problem that the device wasn't able to sink properly.

0:25:31.760 --> 0:25:34.720
<v Speaker 1>Because it wasn't able to transmit information properly, they weren't

0:25:34.760 --> 0:25:38.280
<v Speaker 1>getting any data off of the transmitter, and they found

0:25:38.280 --> 0:25:40.679
<v Speaker 1>out it was an antenna issue, and they fixed it

0:25:41.000 --> 0:25:45.160
<v Speaker 1>by putting some foam behind the antenna, like propping it up,

0:25:45.760 --> 0:25:49.159
<v Speaker 1>which I can identify with. I'm old enough that I

0:25:49.200 --> 0:25:52.439
<v Speaker 1>remember when we would get all of our television programming

0:25:52.560 --> 0:25:55.280
<v Speaker 1>over the air, and I was the official. Hey moved

0:25:55.320 --> 0:25:58.280
<v Speaker 1>the antenna a quarter inch to the left so that

0:25:58.320 --> 0:26:00.199
<v Speaker 1>we can get I love Lucy on the e V

0:26:01.840 --> 0:26:06.880
<v Speaker 1>So I was the piece of foam in my family anyway. Uh.

0:26:06.920 --> 0:26:10.000
<v Speaker 1>These were the kind of like CLUEG solutions they had

0:26:10.000 --> 0:26:13.080
<v Speaker 1>to go with early on just to get their their

0:26:13.080 --> 0:26:16.200
<v Speaker 1>technology working. But the important thing was it actually did

0:26:16.600 --> 0:26:20.640
<v Speaker 1>make it work. Now, while their proof of concept was working,

0:26:20.680 --> 0:26:23.880
<v Speaker 1>they discovered that that food dollars just was not going

0:26:23.920 --> 0:26:27.080
<v Speaker 1>to be nearly enough to bring a product to market.

0:26:28.080 --> 0:26:32.240
<v Speaker 1>They had underestimated how incredibly challenging it is to get

0:26:32.240 --> 0:26:37.159
<v Speaker 1>into manufacturing. It requires creating a supply chain. You have

0:26:37.200 --> 0:26:40.200
<v Speaker 1>to figure out who's going to supply the various little

0:26:40.240 --> 0:26:43.520
<v Speaker 1>components that together make your product. You have to form

0:26:43.600 --> 0:26:47.480
<v Speaker 1>relationships with the various suppliers of microchips and sensors. You

0:26:47.520 --> 0:26:50.040
<v Speaker 1>have to figure out what is the form factor of

0:26:50.080 --> 0:26:52.119
<v Speaker 1>your product going to look like, like what is it

0:26:52.200 --> 0:26:54.639
<v Speaker 1>actually going to how's the design going to be, and

0:26:54.680 --> 0:26:57.840
<v Speaker 1>who's gonna make it, who's gonna cast the molds, who's

0:26:57.840 --> 0:27:00.440
<v Speaker 1>going to produce the plastic. Uh. This is where I

0:27:00.480 --> 0:27:02.640
<v Speaker 1>would talk about China a bit, because they had to

0:27:02.680 --> 0:27:05.040
<v Speaker 1>look at Chinese suppliers. That was one of the ways

0:27:05.040 --> 0:27:07.639
<v Speaker 1>to keep costs down is that and that's what a

0:27:07.680 --> 0:27:10.000
<v Speaker 1>lot of electronics companies do they look to China to

0:27:10.040 --> 0:27:13.960
<v Speaker 1>produce the little various components that are then assembled together

0:27:14.000 --> 0:27:16.800
<v Speaker 1>and then sold in other parts of the world. So

0:27:18.080 --> 0:27:21.520
<v Speaker 1>they realized that they just did not have the money

0:27:21.560 --> 0:27:25.000
<v Speaker 1>to go through this whole process. They needed more, so

0:27:25.040 --> 0:27:28.879
<v Speaker 1>they held some more rounds of venture capital fundraising, and

0:27:28.920 --> 0:27:31.800
<v Speaker 1>they raised some quite a bit of money, like more

0:27:31.800 --> 0:27:34.160
<v Speaker 1>than a couple of million, because by now people were

0:27:34.200 --> 0:27:36.399
<v Speaker 1>starting to pay attention to what it was they were

0:27:36.440 --> 0:27:39.719
<v Speaker 1>working on. But really, I think the turning point in

0:27:39.800 --> 0:27:42.960
<v Speaker 1>that early time happened in September two thousand eight. So

0:27:43.000 --> 0:27:45.119
<v Speaker 1>they got together in two thousand seven, they started working

0:27:45.119 --> 0:27:49.440
<v Speaker 1>on their idea. September two eight, they got an opportunity

0:27:49.480 --> 0:27:52.640
<v Speaker 1>to show off that idea, show off a prototype, and

0:27:52.680 --> 0:27:56.800
<v Speaker 1>explain their sales pitch, and they did an event called

0:27:57.200 --> 0:28:01.199
<v Speaker 1>tech Crunch fifty uh So tech Crunch they're known for

0:28:01.280 --> 0:28:04.199
<v Speaker 1>lots of stuff. They're they're great with technology news, but

0:28:04.240 --> 0:28:09.080
<v Speaker 1>they also are really a launch point for startups. They

0:28:09.119 --> 0:28:13.720
<v Speaker 1>give startups an opportunity to meet with people, to express

0:28:13.760 --> 0:28:15.880
<v Speaker 1>what it is they are working on and to try

0:28:15.880 --> 0:28:18.160
<v Speaker 1>and see if there's any interest or support out there

0:28:18.560 --> 0:28:23.000
<v Speaker 1>to continue the work. So tech Crunch fifty was a

0:28:23.080 --> 0:28:25.720
<v Speaker 1>huge deal for these guys to be involved with it,

0:28:26.560 --> 0:28:31.159
<v Speaker 1>and they landed a spot in that two thousand eight event. Now,

0:28:31.800 --> 0:28:37.160
<v Speaker 1>going into it, they weren't exactly overwhelmed with optimism. In fact,

0:28:37.840 --> 0:28:40.520
<v Speaker 1>Freedman had said, I don't think more than five people

0:28:40.560 --> 0:28:43.200
<v Speaker 1>will be stupid enough to give us their credit card,

0:28:44.480 --> 0:28:48.760
<v Speaker 1>a somewhat cynical statement, and part of wasn't a whole

0:28:48.800 --> 0:28:51.720
<v Speaker 1>lot better. He said, Nah, you're wrong, We'll get way

0:28:51.760 --> 0:28:55.280
<v Speaker 1>more than five. I bet we'll get fifty orders five zero.

0:28:56.000 --> 0:29:00.600
<v Speaker 1>Turned out that they were grossly underestimating the appeal of

0:29:00.640 --> 0:29:04.600
<v Speaker 1>this Fitbit product. By the end of the day after

0:29:04.680 --> 0:29:08.400
<v Speaker 1>they had presented their idea, they had two thousand pre orders,

0:29:09.560 --> 0:29:11.640
<v Speaker 1>these for two guys who had not yet figured out

0:29:11.640 --> 0:29:14.520
<v Speaker 1>how they were going to produce these these products. They

0:29:14.880 --> 0:29:17.080
<v Speaker 1>knew how it was gonna work, they had an idea

0:29:17.120 --> 0:29:19.280
<v Speaker 1>of what it needed to look like, but they did

0:29:19.320 --> 0:29:22.560
<v Speaker 1>not have a manufacturing process in place yet to produce

0:29:22.560 --> 0:29:25.520
<v Speaker 1>two thousand. It did not help that Park had said

0:29:26.480 --> 0:29:31.720
<v Speaker 1>that they would have the orders out by Christmas. Now

0:29:32.640 --> 0:29:37.200
<v Speaker 1>the first Fitbit trackers, the original product from Fitbit was

0:29:37.240 --> 0:29:39.920
<v Speaker 1>called the Tracker. There was that little clothes pin, thing

0:29:39.960 --> 0:29:44.640
<v Speaker 1>that could clip onto a pocket or whatever. They shipped

0:29:44.640 --> 0:29:49.720
<v Speaker 1>in December two thousand nine, so they presented in September

0:29:49.720 --> 0:29:53.200
<v Speaker 1>two eight. James Park says they'll be out in time

0:29:53.200 --> 0:29:57.440
<v Speaker 1>for Christmas, and they shipped December two thousand nine, and

0:29:57.520 --> 0:29:59.720
<v Speaker 1>James Park said, well, in my defense, I never said

0:29:59.760 --> 0:30:06.440
<v Speaker 1>wh Christmas. Whack at ashrak. Uh. Yeah, it was kind

0:30:06.440 --> 0:30:11.800
<v Speaker 1>of jokingly saying, yeah, we're a year late, but it

0:30:11.840 --> 0:30:16.720
<v Speaker 1>but it came out. And honestly, that delay really illustrates

0:30:16.720 --> 0:30:20.160
<v Speaker 1>what I was saying earlier that manufacturing is hard. It

0:30:20.280 --> 0:30:24.640
<v Speaker 1>is difficult. It's it's something that even big companies struggle with.

0:30:24.720 --> 0:30:26.760
<v Speaker 1>And these are big companies that have been around for

0:30:26.760 --> 0:30:30.720
<v Speaker 1>for decades and they're in the business of making consumer electronics.

0:30:31.160 --> 0:30:34.080
<v Speaker 1>It's challenging for them and they've been doing it for decades.

0:30:34.600 --> 0:30:37.680
<v Speaker 1>For two guys who had started up this company, it

0:30:37.760 --> 0:30:42.720
<v Speaker 1>was way more challenging. So once you are able to

0:30:42.720 --> 0:30:47.400
<v Speaker 1>crack that manufacturing problem, which is again a non trivial task,

0:30:47.640 --> 0:30:51.320
<v Speaker 1>you can go on to actually do business. And Uh,

0:30:51.720 --> 0:30:54.400
<v Speaker 1>it took them a year longer than what they were anticipating,

0:30:54.400 --> 0:30:57.240
<v Speaker 1>but they were able to actually ship out the fitness tracker,

0:30:58.040 --> 0:31:00.600
<v Speaker 1>and as it turned out, it was incredibly popular. They

0:31:00.640 --> 0:31:05.120
<v Speaker 1>got thousands and thousands of orders and immediately the value

0:31:05.160 --> 0:31:08.440
<v Speaker 1>of fitbit was on the rise. So this was two

0:31:08.440 --> 0:31:12.160
<v Speaker 1>thousand nine and it was met with real enthusiasm. The

0:31:12.200 --> 0:31:15.040
<v Speaker 1>low energy electronics meant that the device could go on

0:31:15.160 --> 0:31:18.720
<v Speaker 1>for several days without ever needing a recharge. The dashboard

0:31:18.840 --> 0:31:21.640
<v Speaker 1>side of things that that view you would get on

0:31:21.680 --> 0:31:24.680
<v Speaker 1>your computer or later on your smartphone meant that the

0:31:24.760 --> 0:31:28.200
<v Speaker 1>user was given so much information that was relevant to

0:31:28.240 --> 0:31:31.080
<v Speaker 1>what they were doing. It had a huge appeal. One

0:31:31.120 --> 0:31:34.400
<v Speaker 1>of the easiest ways to sell anything to anyone is

0:31:34.400 --> 0:31:41.160
<v Speaker 1>to involve them in the the product itself, right to say,

0:31:41.880 --> 0:31:44.560
<v Speaker 1>you are what makes this product special. The way you

0:31:44.680 --> 0:31:48.560
<v Speaker 1>use it is reflected in the results you get, and

0:31:48.640 --> 0:31:51.360
<v Speaker 1>so it's all about you. If you want to sell

0:31:51.400 --> 0:31:53.240
<v Speaker 1>me anything and you tell me it's all about me,

0:31:54.280 --> 0:31:58.280
<v Speaker 1>you're well ahead of the game, because I love me. Anyway,

0:32:00.280 --> 0:32:02.520
<v Speaker 1>On the back end of things, the fitbit researchers were

0:32:02.520 --> 0:32:06.080
<v Speaker 1>starting to work on various algorithms to try and turn

0:32:06.320 --> 0:32:09.800
<v Speaker 1>just a number that says steps into something more meaningful.

0:32:10.080 --> 0:32:11.880
<v Speaker 1>So you may have noticed if you've ever used an

0:32:11.920 --> 0:32:15.480
<v Speaker 1>activity tracker that you will get a notification of how

0:32:15.480 --> 0:32:18.680
<v Speaker 1>many miles you've walked in a day. Well, you can't

0:32:18.720 --> 0:32:22.520
<v Speaker 1>just base that on the number of steps, because your

0:32:22.640 --> 0:32:25.280
<v Speaker 1>stride is going to be a different length from someone

0:32:25.280 --> 0:32:28.040
<v Speaker 1>else's stride. If you have someone who's five ft tall

0:32:28.440 --> 0:32:31.360
<v Speaker 1>and someone else who is six ft six and they

0:32:31.400 --> 0:32:35.040
<v Speaker 1>both walk five thousand steps, I guarantee you the six

0:32:35.080 --> 0:32:38.400
<v Speaker 1>ft six inch tall guy walked further. They took the

0:32:38.440 --> 0:32:41.240
<v Speaker 1>same number of steps. But the person who is six

0:32:41.240 --> 0:32:43.520
<v Speaker 1>ft six inch and I said guy, but honestly, the

0:32:43.520 --> 0:32:45.640
<v Speaker 1>first person that popped in my head is a woman

0:32:45.840 --> 0:32:50.320
<v Speaker 1>I know who is very tall. Their stride is longer,

0:32:50.360 --> 0:32:53.840
<v Speaker 1>so they're going to cover more distance. So part of

0:32:53.840 --> 0:32:58.040
<v Speaker 1>this dashboard experience was users giving information about themselves, like

0:32:58.120 --> 0:33:01.800
<v Speaker 1>their height, so that the estimations could be more accurate.

0:33:02.160 --> 0:33:05.040
<v Speaker 1>Someone who's my height, which is five ft eight is

0:33:05.080 --> 0:33:07.320
<v Speaker 1>not gonna be as walking as far as someone who

0:33:07.320 --> 0:33:09.000
<v Speaker 1>has six ft six even if we took the same

0:33:09.080 --> 0:33:11.960
<v Speaker 1>number of steps. Uh. That was the whole point. So

0:33:12.000 --> 0:33:13.800
<v Speaker 1>if you want to estimate how many miles you walk,

0:33:13.840 --> 0:33:15.600
<v Speaker 1>you need to know the height of the person so

0:33:15.640 --> 0:33:19.240
<v Speaker 1>that you can make that estimation. Also, with calories burning,

0:33:19.280 --> 0:33:22.520
<v Speaker 1>you'd have to make estimations based upon age and other factors,

0:33:22.560 --> 0:33:24.680
<v Speaker 1>and in fact, there's so many factors that a lot

0:33:24.720 --> 0:33:28.800
<v Speaker 1>of people have argued that the calories burned metric that

0:33:28.960 --> 0:33:33.360
<v Speaker 1>you find in various activity trackers is largely meaningless because

0:33:34.040 --> 0:33:37.360
<v Speaker 1>it relies on too many unknown variables. It can only

0:33:37.960 --> 0:33:40.240
<v Speaker 1>really look at things like how much activity did you

0:33:40.320 --> 0:33:42.960
<v Speaker 1>do that day and how frequently did you do it?

0:33:43.800 --> 0:33:47.880
<v Speaker 1>But that doesn't necessarily translate to an easy this is

0:33:47.880 --> 0:33:51.240
<v Speaker 1>how many calories you burned. That being said, it could

0:33:51.280 --> 0:33:54.440
<v Speaker 1>help people when they're trying to make general kind of

0:33:54.520 --> 0:33:58.640
<v Speaker 1>high level decisions about their diet, their activity levels, that

0:33:58.720 --> 0:34:01.280
<v Speaker 1>sort of thing. So it really depends on how you

0:34:01.320 --> 0:34:03.520
<v Speaker 1>look at the products. People who are looking at it

0:34:03.640 --> 0:34:08.239
<v Speaker 1>as a almost hobbyist way to get into fitness saw

0:34:08.360 --> 0:34:10.799
<v Speaker 1>value in it. People who are looking at it as saying,

0:34:10.800 --> 0:34:13.600
<v Speaker 1>you're marketing this more as a medical device. They had

0:34:13.640 --> 0:34:17.120
<v Speaker 1>a lot of harsh criticism to level at fitbit, for

0:34:17.160 --> 0:34:20.160
<v Speaker 1>a good reason, because medical devices have to be far

0:34:20.320 --> 0:34:25.400
<v Speaker 1>more precise, far more accurate than something like an activity tracker.

0:34:25.840 --> 0:34:27.960
<v Speaker 1>But a lot of people were arguing that these two

0:34:28.000 --> 0:34:31.960
<v Speaker 1>camps were not talking the same language, and that Fitbit

0:34:32.040 --> 0:34:35.279
<v Speaker 1>was really aiming itself more toward the hobbyist side than

0:34:35.320 --> 0:34:40.040
<v Speaker 1>the hardcore medical application side. Now it didn't hurt the

0:34:40.040 --> 0:34:45.240
<v Speaker 1>fitbits popularity that they happen to have some savvy into

0:34:45.520 --> 0:34:49.680
<v Speaker 1>social media as well. Right, That incorporation of the social

0:34:49.719 --> 0:34:53.839
<v Speaker 1>aspect in fitbits business plan really helped a great deal.

0:34:54.480 --> 0:34:57.520
<v Speaker 1>They incorporated this ability to connect with friends, and you

0:34:57.560 --> 0:35:00.760
<v Speaker 1>could actually compare how many steps have I taken versus

0:35:00.880 --> 0:35:03.960
<v Speaker 1>how many steps has Matt Frederick taken versus how many

0:35:04.000 --> 0:35:07.399
<v Speaker 1>steps has been Bowland taken? That kind of thing, and

0:35:07.760 --> 0:35:11.200
<v Speaker 1>by comparing them, you could end up either thinking, oh,

0:35:11.239 --> 0:35:13.640
<v Speaker 1>I need to get another two thousand steps in because

0:35:13.640 --> 0:35:16.440
<v Speaker 1>I gotta beat this guy, or maybe you're thinking I'm

0:35:16.480 --> 0:35:19.440
<v Speaker 1>way more active than those slug of beds. And it

0:35:19.520 --> 0:35:22.960
<v Speaker 1>created also a competitive element to fit Bit that they

0:35:22.960 --> 0:35:26.960
<v Speaker 1>weren't necessarily anticipating when they first started to implement the

0:35:27.080 --> 0:35:31.920
<v Speaker 1>social uh features in the fitbit product. But they realized

0:35:31.920 --> 0:35:36.120
<v Speaker 1>that that competitive element drove people to use fitbit more

0:35:36.440 --> 0:35:39.520
<v Speaker 1>and to become kind of Fitbit evangelists because they were

0:35:39.560 --> 0:35:42.720
<v Speaker 1>getting out, they were doing things they wanted to earn steps.

0:35:42.880 --> 0:35:45.359
<v Speaker 1>Anyone who's had an activity tracker, I guarantee you. At

0:35:45.440 --> 0:35:48.439
<v Speaker 1>some point in their lives, they have said, I don't

0:35:48.440 --> 0:35:50.520
<v Speaker 1>even know why I walked. I wasn't wearing my tracker.

0:35:50.760 --> 0:35:54.400
<v Speaker 1>They didn't count, Like somehow those steps don't count unless

0:35:54.400 --> 0:35:57.880
<v Speaker 1>they're being quantified by the activity tracker. Well, that's great

0:35:57.880 --> 0:36:00.120
<v Speaker 1>news for a company like fitbit, because it means that

0:36:00.200 --> 0:36:03.319
<v Speaker 1>people need the product, or they at least think they

0:36:03.360 --> 0:36:07.560
<v Speaker 1>need the product that is selling. And uh, that social

0:36:07.560 --> 0:36:10.080
<v Speaker 1>element would actually come to be a problem a little

0:36:10.120 --> 0:36:14.279
<v Speaker 1>bit later. I'll mention that when we get there, it's saucy.

0:36:14.960 --> 0:36:17.440
<v Speaker 1>By the way, in case you're wondering, I am on

0:36:17.560 --> 0:36:21.360
<v Speaker 1>the top of my fitbit friends list um by about

0:36:21.480 --> 0:36:24.839
<v Speaker 1>fifteen thousand steps per week. But to be fair, I

0:36:24.880 --> 0:36:27.560
<v Speaker 1>also walked to and from work, and I lived several

0:36:27.600 --> 0:36:31.000
<v Speaker 1>miles away from the office, so it's a necessity. I

0:36:31.040 --> 0:36:34.680
<v Speaker 1>don't drive, so that helps me with my steps. It's

0:36:34.680 --> 0:36:38.880
<v Speaker 1>not like I am super physically active compared to the

0:36:38.920 --> 0:36:41.840
<v Speaker 1>people on my list. It's a matter of necessity for me.

0:36:43.800 --> 0:36:45.719
<v Speaker 1>All right. You know what, let's take a moment to

0:36:45.760 --> 0:36:50.160
<v Speaker 1>talk about the awkwardness of social connectivity. You see, one

0:36:50.160 --> 0:36:51.960
<v Speaker 1>of the things that bit also allowed you to do

0:36:52.200 --> 0:36:55.959
<v Speaker 1>is create an exercise diary because the fitbit was really

0:36:55.960 --> 0:36:58.920
<v Speaker 1>good at detecting when you were walking or when you

0:36:58.960 --> 0:37:02.080
<v Speaker 1>were jogging, But a lot of the fitbits weren't waterproof,

0:37:02.400 --> 0:37:06.040
<v Speaker 1>so you couldn't track your your activity when you were swimming.

0:37:06.680 --> 0:37:09.680
<v Speaker 1>Many of them couldn't really tell what was going on

0:37:09.719 --> 0:37:12.480
<v Speaker 1>if you were doing exercises in a gem like let's

0:37:12.480 --> 0:37:14.840
<v Speaker 1>say you're getting on the elliptical, it might not be

0:37:14.920 --> 0:37:19.400
<v Speaker 1>able to track that movement. So the exercise diary feature

0:37:19.760 --> 0:37:23.600
<v Speaker 1>on your dashboard allowed you to enter other activities, get

0:37:23.640 --> 0:37:26.960
<v Speaker 1>an estimation of how many calories you burned doing those activities,

0:37:27.160 --> 0:37:29.279
<v Speaker 1>and then you would factor all of that in for

0:37:29.400 --> 0:37:32.040
<v Speaker 1>your end of the day report, saying here's how many

0:37:32.040 --> 0:37:37.640
<v Speaker 1>calories you burned today. Fitbits said that as a default

0:37:37.920 --> 0:37:41.400
<v Speaker 1>shared setting, meaning that if you were creating an exercise

0:37:41.480 --> 0:37:44.960
<v Speaker 1>diary and you had not changed the default, you were

0:37:45.000 --> 0:37:47.840
<v Speaker 1>sharing all of that information to the general public. You

0:37:47.960 --> 0:37:50.040
<v Speaker 1>might say like, I got on the elliptical for twenty

0:37:50.040 --> 0:37:53.080
<v Speaker 1>five minutes and I burned this many calories, and anyone

0:37:53.080 --> 0:37:56.520
<v Speaker 1>who looks at your profile could see that. But people

0:37:56.560 --> 0:37:59.839
<v Speaker 1>were putting in all sorts of different entries in their

0:38:00.040 --> 0:38:04.960
<v Speaker 1>exercise diaries, including times when they were getting a little romantic,

0:38:05.480 --> 0:38:10.879
<v Speaker 1>getting a little uh intimate, getting busy. In other words, Yeah,

0:38:11.000 --> 0:38:16.239
<v Speaker 1>people were putting down sex as an activity in these

0:38:16.280 --> 0:38:20.200
<v Speaker 1>exercise diaries and getting estimations for how many calories they

0:38:20.280 --> 0:38:24.719
<v Speaker 1>burned during those activities, not necessarily realizing that by default

0:38:25.040 --> 0:38:28.840
<v Speaker 1>this was being shared to everyone out there. So in

0:38:28.880 --> 0:38:33.280
<v Speaker 1>two thousand eleven this information kind of got spread around.

0:38:33.360 --> 0:38:36.040
<v Speaker 1>A lot of blogs had fun with it. They talked

0:38:36.080 --> 0:38:40.759
<v Speaker 1>about how fitbit was inadvertently sharing people's sex lives to

0:38:41.040 --> 0:38:44.200
<v Speaker 1>anyone who was interested, and it was at that point

0:38:44.200 --> 0:38:47.600
<v Speaker 1>that Fitbit decided to change that particular policy and set

0:38:47.640 --> 0:38:51.359
<v Speaker 1>the default to private instead of public, And at that

0:38:51.400 --> 0:38:55.560
<v Speaker 1>point we no longer saw tons of people sharing their

0:38:55.600 --> 0:38:59.480
<v Speaker 1>sex lives unknowingly. If they did, they were doing it

0:38:59.480 --> 0:39:01.720
<v Speaker 1>because they in in and change the setting to public

0:39:01.920 --> 0:39:04.440
<v Speaker 1>from private. Oh if it ben't even win an extra stop.

0:39:04.480 --> 0:39:09.880
<v Speaker 1>They actually contacted search engines and they asked for the

0:39:09.920 --> 0:39:13.799
<v Speaker 1>past diary entries to be removed from search engine indexes,

0:39:14.040 --> 0:39:17.160
<v Speaker 1>so that way you couldn't just search someone's fitbit profile

0:39:17.520 --> 0:39:20.680
<v Speaker 1>and use the search results to go back to an

0:39:20.800 --> 0:39:23.719
<v Speaker 1>archive diary entry that you're not supposed to see. So

0:39:23.760 --> 0:39:26.520
<v Speaker 1>they did take some steps to correct this problem. It

0:39:26.560 --> 0:39:28.600
<v Speaker 1>was a problem that they had created by making that

0:39:28.719 --> 0:39:31.520
<v Speaker 1>default public, but it was also a problem that users

0:39:31.560 --> 0:39:36.839
<v Speaker 1>created by putting in other activities on that exercise stuff. Uh.

0:39:37.520 --> 0:39:41.839
<v Speaker 1>But yeah, that was a little awkward. So fitbit um

0:39:42.080 --> 0:39:45.320
<v Speaker 1>learned the hard way that getting into that social game

0:39:46.000 --> 0:39:48.719
<v Speaker 1>is a little tricky, kin of the same thing as

0:39:48.960 --> 0:39:53.239
<v Speaker 1>getting into manufacturing is a little tricky. After all that,

0:39:53.280 --> 0:39:55.680
<v Speaker 1>the team was going back to work on developing new

0:39:55.760 --> 0:39:58.040
<v Speaker 1>types of Fitbit trackers. Now I'm not going to go

0:39:58.080 --> 0:40:01.080
<v Speaker 1>into every single product that they've made, because that would

0:40:01.120 --> 0:40:03.640
<v Speaker 1>be silly. Uh. There are a lot of them that

0:40:03.760 --> 0:40:07.680
<v Speaker 1>haven't been sold for years. They got replaced by later models. Uh,

0:40:07.719 --> 0:40:14.400
<v Speaker 1>they're They're all various variations, I should say on that

0:40:14.480 --> 0:40:19.200
<v Speaker 1>initial fitness tracker. Some have more components to them, but

0:40:19.360 --> 0:40:22.680
<v Speaker 1>ultimately they all work in a very similar way. So

0:40:22.719 --> 0:40:24.480
<v Speaker 1>it doesn't make sense for me to go into all

0:40:24.520 --> 0:40:26.880
<v Speaker 1>the different types. Again, this isn't a commercial for Fitbit.

0:40:27.480 --> 0:40:30.480
<v Speaker 1>This is just an episode talking about the company and

0:40:30.520 --> 0:40:34.760
<v Speaker 1>their technology and how it works. So I will talk

0:40:35.320 --> 0:40:39.719
<v Speaker 1>a little bit about some of the other components that

0:40:39.800 --> 0:40:44.000
<v Speaker 1>are in Fitbit devices. So the Fitbit tracker that was

0:40:44.040 --> 0:40:46.239
<v Speaker 1>their first device. One of the next ones they had

0:40:46.320 --> 0:40:49.240
<v Speaker 1>was the Fitbit Ultra, which was kind of an updated

0:40:49.360 --> 0:40:50.920
<v Speaker 1>version of the tracker, and one of the things that

0:40:51.000 --> 0:40:57.600
<v Speaker 1>added was an altimeter. Uh. And an altimeter is something

0:40:57.640 --> 0:41:02.960
<v Speaker 1>that measures altitude or distance vertically, right, the difference in

0:41:03.120 --> 0:41:08.240
<v Speaker 1>vertical distance between the altimeter and some fixed object, which

0:41:08.880 --> 0:41:12.279
<v Speaker 1>typically is the ground right sea level, or at least

0:41:12.320 --> 0:41:17.480
<v Speaker 1>ground level. And the way it works is it doesn't

0:41:17.600 --> 0:41:23.120
<v Speaker 1>measure directly the distance between it's vertical position in the ground.

0:41:23.920 --> 0:41:27.960
<v Speaker 1>It measures altitude by looking at something related but different

0:41:28.360 --> 0:41:32.719
<v Speaker 1>atmospheric pressure. Now we're gonna go into some basic science time,

0:41:32.800 --> 0:41:35.399
<v Speaker 1>and I know most of you are familiar with this,

0:41:35.480 --> 0:41:38.000
<v Speaker 1>but you know, I always like to have a little refresher.

0:41:38.640 --> 0:41:42.640
<v Speaker 1>The atmosphere that we breathe, it has weight to it, right,

0:41:42.960 --> 0:41:46.839
<v Speaker 1>It's a fluid, and typically we're at the bottom of

0:41:46.880 --> 0:41:49.600
<v Speaker 1>it because we're on ground level or somewhere close to it.

0:41:50.000 --> 0:41:54.279
<v Speaker 1>Not all the time, obviously, but frequently. So if you

0:41:54.320 --> 0:41:57.080
<v Speaker 1>ever felt that you're constantly under pressure, you kind of are,

0:41:58.040 --> 0:42:00.759
<v Speaker 1>at least from the atmosphere. But it's good because if

0:42:00.760 --> 0:42:02.360
<v Speaker 1>you weren't, we wouldn't be able to breathe and you

0:42:02.360 --> 0:42:06.040
<v Speaker 1>would die. So sometimes pressure as good as web saying,

0:42:08.600 --> 0:42:13.120
<v Speaker 1>as you climb in elevation, as you move up a ladder,

0:42:13.480 --> 0:42:17.160
<v Speaker 1>go up some stairs, climb a mountain, get in an airplane,

0:42:18.560 --> 0:42:21.560
<v Speaker 1>you end up having less of this fluid above you

0:42:22.040 --> 0:42:24.120
<v Speaker 1>than you did before. Right, some of that fluids now

0:42:24.160 --> 0:42:27.640
<v Speaker 1>below you. The weight has decreased as you go up

0:42:28.400 --> 0:42:32.400
<v Speaker 1>because you have less atmosphere overhead. It makes sense, right,

0:42:32.440 --> 0:42:36.799
<v Speaker 1>there's less pressing down on you, So there's less weight now.

0:42:36.840 --> 0:42:39.520
<v Speaker 1>If you go far enough, like you climb a tall mountain,

0:42:40.280 --> 0:42:42.640
<v Speaker 1>the pressure changes can be enough to actually have a

0:42:42.640 --> 0:42:45.160
<v Speaker 1>physical effect on you. Most of the time, it's so

0:42:45.200 --> 0:42:48.479
<v Speaker 1>subtle that we cannot detect it by ourselves. We would

0:42:48.520 --> 0:42:51.920
<v Speaker 1>have to have some sort of sensitive instrument in order

0:42:51.960 --> 0:42:57.520
<v Speaker 1>to detect that change. It's also why modern jets are pressurized,

0:42:57.920 --> 0:43:01.920
<v Speaker 1>because if they were unpressurized traveling at thirty ft, the

0:43:01.960 --> 0:43:05.959
<v Speaker 1>atmosphere would be so thin that it would be not

0:43:05.960 --> 0:43:10.200
<v Speaker 1>not not fun times, very not fun times. So you

0:43:10.280 --> 0:43:14.120
<v Speaker 1>pressurize the interior of your plane for a couple of reasons.

0:43:14.160 --> 0:43:16.480
<v Speaker 1>One to make breathing easier to you don't want your

0:43:16.480 --> 0:43:21.279
<v Speaker 1>ear drums to blow out suddenly. Um, So it's really

0:43:21.320 --> 0:43:25.440
<v Speaker 1>important same thing is true for people who are climbing mountains.

0:43:25.520 --> 0:43:29.120
<v Speaker 1>Often you are told that you have to acclimate to

0:43:29.760 --> 0:43:33.920
<v Speaker 1>air pressure at certain stages of tall mountains, otherwise you

0:43:34.000 --> 0:43:38.759
<v Speaker 1>run at the risk of getting sick from altitude sickness. Well,

0:43:38.800 --> 0:43:44.000
<v Speaker 1>altimeters detect air pressure and changes in air pressure, and

0:43:44.200 --> 0:43:47.440
<v Speaker 1>they track things like how many stairs you've climbed by

0:43:47.480 --> 0:43:51.000
<v Speaker 1>detecting those changes in air pressure. The altimeter sensor on

0:43:51.040 --> 0:43:53.319
<v Speaker 1>a fitbit is sensitive enough to detect when you have

0:43:53.440 --> 0:43:57.520
<v Speaker 1>changed ten feet in elevation, whether you're going ten feet

0:43:57.600 --> 0:44:01.160
<v Speaker 1>up or ten feet down, but it only counts stairs

0:44:01.200 --> 0:44:04.000
<v Speaker 1>climbed if you're going up. So, in other words, if

0:44:04.000 --> 0:44:07.880
<v Speaker 1>the atmospheric pressure is decreasing to the point that the

0:44:07.920 --> 0:44:11.960
<v Speaker 1>fitbit says, oh, this guy's gone ten feet up, they've

0:44:12.000 --> 0:44:16.200
<v Speaker 1>climbed some stairs. But if it increases, indicating that you're

0:44:16.239 --> 0:44:18.920
<v Speaker 1>moving downward, it doesn't count it as stairs climbed. And

0:44:18.960 --> 0:44:21.719
<v Speaker 1>that's largely because if you're going downstairs, you don't have

0:44:21.760 --> 0:44:23.640
<v Speaker 1>to exert as much energy as you would if you're

0:44:23.640 --> 0:44:26.600
<v Speaker 1>climbing upstairs. So really you should only be interested in

0:44:26.640 --> 0:44:28.680
<v Speaker 1>how many stairs did you climb, not how many stairs

0:44:28.680 --> 0:44:31.319
<v Speaker 1>did you descend. That's why it doesn't count it if

0:44:31.400 --> 0:44:36.680
<v Speaker 1>you're going down. Uh. I've noticed that that my fitbit

0:44:37.360 --> 0:44:40.720
<v Speaker 1>will sometimes detect a hill as a set of stairs.

0:44:40.760 --> 0:44:43.440
<v Speaker 1>So if it bit tries to determine whether you're climbing

0:44:43.440 --> 0:44:46.640
<v Speaker 1>stairs versus walking up an inclined path by combining the

0:44:46.760 --> 0:44:49.840
<v Speaker 1>data from the altimeter, So how much change in elevation

0:44:49.880 --> 0:44:53.680
<v Speaker 1>have you experienced with the actual motion data from the

0:44:53.760 --> 0:44:58.719
<v Speaker 1>three axis accelerometers which tell how frequently you're moving your arms,

0:44:58.800 --> 0:45:03.080
<v Speaker 1>and can kind of with the combined data suss out

0:45:03.120 --> 0:45:06.000
<v Speaker 1>whether or not you're walking upstairs or you're going up

0:45:06.239 --> 0:45:09.200
<v Speaker 1>a pathway. But it turns out it's not an exact science.

0:45:09.520 --> 0:45:11.920
<v Speaker 1>So for example, yesterday it told me that I climbed

0:45:12.000 --> 0:45:15.600
<v Speaker 1>seventy five flights of stairs. I definitely did not climb

0:45:15.600 --> 0:45:18.399
<v Speaker 1>seventy five flights of stairs yesterday, but I did walk

0:45:18.520 --> 0:45:22.840
<v Speaker 1>up a lot of hills. So that that's the uh,

0:45:22.880 --> 0:45:26.439
<v Speaker 1>you know, kind of subtlety that it can't quite tell

0:45:26.480 --> 0:45:31.320
<v Speaker 1>the difference between If you were to map fitbit data

0:45:31.400 --> 0:45:34.719
<v Speaker 1>against a map, like literally pair a map with the

0:45:34.719 --> 0:45:38.160
<v Speaker 1>fitbit data in a way for it to take into

0:45:38.200 --> 0:45:41.359
<v Speaker 1>account the geography, maybe then it would say, all right,

0:45:41.360 --> 0:45:44.160
<v Speaker 1>well you didn't walk up seventy f five flights of stairs,

0:45:44.160 --> 0:45:46.640
<v Speaker 1>but you did climb this amount of elevation in this

0:45:46.680 --> 0:45:52.480
<v Speaker 1>amount of time. Later, still, fitbit introduced some heart rate

0:45:52.600 --> 0:45:55.080
<v Speaker 1>monitors in some of its products, and you might want

0:45:55.080 --> 0:45:57.480
<v Speaker 1>to know how does that work? For example, the one

0:45:57.480 --> 0:46:00.359
<v Speaker 1>I have as a charge too, it's got heart ray

0:46:00.400 --> 0:46:02.759
<v Speaker 1>monitor on it. So how does this thing that I

0:46:02.800 --> 0:46:07.839
<v Speaker 1>wear on my wrist tell how frequently my heartbeats? All right?

0:46:07.920 --> 0:46:11.680
<v Speaker 1>So it does this through Oh, good grief, this is

0:46:11.719 --> 0:46:15.480
<v Speaker 1>gonna be a slaughter, all right. It does this through

0:46:15.520 --> 0:46:23.320
<v Speaker 1>a process called photo plethism graphy, also known as PPG,

0:46:24.760 --> 0:46:26.200
<v Speaker 1>which is how I'm going to refer to it for

0:46:26.239 --> 0:46:28.200
<v Speaker 1>the rest of this discussion, because I think I might

0:46:28.239 --> 0:46:31.440
<v Speaker 1>be able to say photo flip, photo flip this ma

0:46:31.680 --> 0:46:35.239
<v Speaker 1>graphy correctly twice in my entire life, and uh, I

0:46:35.280 --> 0:46:39.200
<v Speaker 1>think I just did so. Game over man. Alright. So,

0:46:39.320 --> 0:46:42.440
<v Speaker 1>human blood, as I'm sure most of you are aware,

0:46:43.040 --> 0:46:47.840
<v Speaker 1>is red, right well, red stuff reflects red light and

0:46:47.960 --> 0:46:52.200
<v Speaker 1>it absorbs green light really well. So anything that's red

0:46:52.200 --> 0:46:55.279
<v Speaker 1>gets reflected off of red stuff, anything that's green gets

0:46:55.280 --> 0:46:59.040
<v Speaker 1>absorbed by red stuff. So devices like the fitbit charged

0:46:59.080 --> 0:47:02.840
<v Speaker 1>to pair a couple of light ometers that are pulsing

0:47:02.880 --> 0:47:08.080
<v Speaker 1>green light with a sensor that detects reflected green light,

0:47:09.040 --> 0:47:11.279
<v Speaker 1>and that's how it's able to tell how much light

0:47:11.480 --> 0:47:16.359
<v Speaker 1>is being reflected or absorbed by your blood. So it's

0:47:16.360 --> 0:47:21.160
<v Speaker 1>positioned over little blood veins in your arm, and whenever

0:47:21.520 --> 0:47:23.640
<v Speaker 1>it detects that a lot of light is being absorbed,

0:47:24.040 --> 0:47:28.080
<v Speaker 1>it's saying, oh, blood is flowing through the vein right now.

0:47:28.640 --> 0:47:31.279
<v Speaker 1>Whenever it detects a lot of light is being reflected,

0:47:31.320 --> 0:47:35.279
<v Speaker 1>it says, oh, blood is not flowing through that vein

0:47:35.400 --> 0:47:39.839
<v Speaker 1>right now. And by counting the number of times that

0:47:39.960 --> 0:47:44.040
<v Speaker 1>this absorption and reflection pattern goes within a minute, it

0:47:44.120 --> 0:47:46.879
<v Speaker 1>gives you your heart rate. That's how it works. It's

0:47:46.920 --> 0:47:51.000
<v Speaker 1>kind of cool. It's not full proof to detect heartbeats

0:47:51.000 --> 0:47:53.920
<v Speaker 1>this way. Advice has to be fairly secure against the skin.

0:47:54.920 --> 0:47:56.920
<v Speaker 1>So when you exercise, you tend to move around a lot.

0:47:56.960 --> 0:48:00.480
<v Speaker 1>At least that's what I'm lead to understand. And uh,

0:48:00.560 --> 0:48:03.040
<v Speaker 1>I'm someone who walks a lot, but i haven't really

0:48:03.719 --> 0:48:07.360
<v Speaker 1>jumped into that full exercise schedule, so I'm only speaking

0:48:07.360 --> 0:48:09.600
<v Speaker 1>from second hand experience at this point. But if you're

0:48:09.640 --> 0:48:12.440
<v Speaker 1>doing a lot of vigorous weightlifting or running or something.

0:48:12.480 --> 0:48:15.320
<v Speaker 1>A wrist mounted activity tracker is probably going to slide

0:48:15.320 --> 0:48:18.160
<v Speaker 1>around a lot, and that means it's more difficult to

0:48:18.200 --> 0:48:22.000
<v Speaker 1>get an accurate reading on the heart rate UM and

0:48:22.040 --> 0:48:24.919
<v Speaker 1>that actually has caused some real issues. It's actually could

0:48:24.920 --> 0:48:28.919
<v Speaker 1>be potentially dangerous. Uh. Some people really push themselves very

0:48:28.960 --> 0:48:31.319
<v Speaker 1>hard when they're working out. They're trying to get their

0:48:31.360 --> 0:48:34.920
<v Speaker 1>heart at a peak level for a certain amount of time. UM.

0:48:35.120 --> 0:48:37.799
<v Speaker 1>Particularly people who are really trying to push their performance,

0:48:38.200 --> 0:48:39.719
<v Speaker 1>and they need to know if their heart rate is

0:48:39.760 --> 0:48:42.839
<v Speaker 1>exceeding safe parameters. If it's at peak for too long,

0:48:42.920 --> 0:48:47.520
<v Speaker 1>they could actually suffer some serious health problems. So Fitbit

0:48:47.600 --> 0:48:50.239
<v Speaker 1>and other activity company tracker companies have come under fire

0:48:50.360 --> 0:48:54.279
<v Speaker 1>from some healthcare professionals who have said, your marketing a

0:48:54.360 --> 0:48:57.920
<v Speaker 1>product with certain claims that could lead someone to believe

0:48:58.000 --> 0:49:03.040
<v Speaker 1>they have a level of vision akin to a medical device,

0:49:03.600 --> 0:49:07.280
<v Speaker 1>but you haven't submitted your products to the kind of testing,

0:49:07.320 --> 0:49:10.399
<v Speaker 1>the rigorous testing that medical devices have to go through

0:49:10.760 --> 0:49:14.320
<v Speaker 1>in order to be certified as being that kind of accurate.

0:49:14.880 --> 0:49:18.480
<v Speaker 1>And uh. Again it becomes this this war of words

0:49:18.840 --> 0:49:21.960
<v Speaker 1>with activity tracker and company saying this is something to

0:49:22.040 --> 0:49:26.960
<v Speaker 1>help people with fitness issues, but it's not marketed as

0:49:26.960 --> 0:49:29.719
<v Speaker 1>a medical device, and the medical industry saying yeah, but

0:49:29.760 --> 0:49:31.839
<v Speaker 1>people are kind of treating it that way. So there's

0:49:31.840 --> 0:49:34.480
<v Speaker 1>a level of responsibility you need to take, and it's

0:49:34.520 --> 0:49:38.239
<v Speaker 1>kind of a back and forth. Now. By measuring a

0:49:38.320 --> 0:49:40.680
<v Speaker 1>user's heart rate, fitbit can also make a little bit

0:49:40.760 --> 0:49:43.239
<v Speaker 1>more of an educated guess as to how many calories

0:49:43.320 --> 0:49:46.200
<v Speaker 1>that person is burning in a day. And you probably

0:49:46.200 --> 0:49:49.000
<v Speaker 1>heard about the various ranges of heart rates that indicate

0:49:49.000 --> 0:49:52.560
<v Speaker 1>whether you're in a fat burning mode which is slightly elevated,

0:49:53.000 --> 0:49:55.759
<v Speaker 1>or if you're in a cardio vascular exercise mode, which

0:49:55.800 --> 0:49:58.800
<v Speaker 1>is a range beyond that, or if you're in peak mode,

0:49:58.840 --> 0:50:01.719
<v Speaker 1>which is that other level I was talking about, or

0:50:01.760 --> 0:50:04.480
<v Speaker 1>if you're just resting. And this is actually a pretty

0:50:04.480 --> 0:50:07.640
<v Speaker 1>tricky area itself, even outside of the technology sphere, there

0:50:07.640 --> 0:50:09.839
<v Speaker 1>are a lot of people who argue exactly where that

0:50:09.960 --> 0:50:13.200
<v Speaker 1>range should be and how accurate it is, or whether

0:50:13.239 --> 0:50:15.279
<v Speaker 1>it's accurate at all, or what does it mean or

0:50:15.480 --> 0:50:18.080
<v Speaker 1>is it meaningful? Uh, And I'm not going to get

0:50:18.080 --> 0:50:19.680
<v Speaker 1>into that because it doesn't really have anything to do

0:50:19.760 --> 0:50:21.759
<v Speaker 1>with the technology, but it does show that this is

0:50:21.800 --> 0:50:25.319
<v Speaker 1>another area where there's a lot of disagreement about what

0:50:25.600 --> 0:50:29.800
<v Speaker 1>is the actual right way to go forward. But Fitbit

0:50:29.840 --> 0:50:33.320
<v Speaker 1>will combine information from all these different accelerometers and altimeter

0:50:33.440 --> 0:50:35.719
<v Speaker 1>and heart rate sensors in order to give you an

0:50:35.760 --> 0:50:38.120
<v Speaker 1>idea of how many calories you have burned throughout the day,

0:50:38.600 --> 0:50:45.399
<v Speaker 1>even though that might not be absolutely accurate. Now we're

0:50:45.400 --> 0:50:48.240
<v Speaker 1>gonna talk a little bit more about the company side

0:50:48.239 --> 0:50:51.000
<v Speaker 1>of Fitbit, now that we've covered the technology side quite

0:50:51.000 --> 0:50:53.759
<v Speaker 1>a bit in just a second. But first let's take

0:50:53.760 --> 0:51:04.160
<v Speaker 1>another quick break to thank our sponsor. All Right, let's

0:51:04.200 --> 0:51:06.879
<v Speaker 1>go back to talk about the company a little bit

0:51:07.160 --> 0:51:12.040
<v Speaker 1>and how Fitbit has performed through all of this. So

0:51:12.239 --> 0:51:15.960
<v Speaker 1>shortly after Fitbit took off, activity trackers became a huge

0:51:16.360 --> 0:51:20.040
<v Speaker 1>deal in the electronics industry, and Fitbit enjoyed a great

0:51:20.040 --> 0:51:23.200
<v Speaker 1>amount of success. Very early on, they focused on creating

0:51:23.239 --> 0:51:26.520
<v Speaker 1>those products that we're feeling, filling a niche between like

0:51:27.600 --> 0:51:31.120
<v Speaker 1>and two hundred dollars. Really like the hundred and thirty

0:51:31.640 --> 0:51:35.360
<v Speaker 1>and fifty dollar range was their their playground, and that

0:51:35.440 --> 0:51:39.800
<v Speaker 1>also meant that they were avoiding the problems of creating

0:51:40.280 --> 0:51:45.839
<v Speaker 1>higher priced luxury items that that some electronics fans were

0:51:45.840 --> 0:51:49.359
<v Speaker 1>balking at. They also decided early that they were not

0:51:49.400 --> 0:51:52.520
<v Speaker 1>going to get into smart watches right away, which ended

0:51:52.600 --> 0:51:54.719
<v Speaker 1>up being a smart decision because a lot of people

0:51:54.760 --> 0:51:58.160
<v Speaker 1>were out there trying to create smart watches and no

0:51:58.239 --> 0:52:00.319
<v Speaker 1>one was really sure what a smart watch would be

0:52:00.400 --> 0:52:02.840
<v Speaker 1>or what should do apart from tell the time, and

0:52:02.840 --> 0:52:04.480
<v Speaker 1>I'm sure some of them were even wondering if it

0:52:04.520 --> 0:52:08.960
<v Speaker 1>should do that. Now, Fitbit did include stuff like a

0:52:09.120 --> 0:52:13.360
<v Speaker 1>watch and some of its models, so there were models

0:52:13.440 --> 0:52:18.600
<v Speaker 1>after the Fitbit tracker that had a clock element to them,

0:52:18.719 --> 0:52:21.719
<v Speaker 1>but you would say that it was a clock on

0:52:21.800 --> 0:52:24.920
<v Speaker 1>an activity tracker, not that it was a watch that

0:52:25.080 --> 0:52:32.440
<v Speaker 1>also tracked activity. So very different approach, not something that

0:52:32.480 --> 0:52:36.600
<v Speaker 1>the smart watch companies were really going after. Then they

0:52:36.640 --> 0:52:39.440
<v Speaker 1>started adding other features, like you could get notifications on

0:52:39.640 --> 0:52:42.600
<v Speaker 1>certain Fitbit devices, so when you paired it with a phone,

0:52:42.840 --> 0:52:44.960
<v Speaker 1>if a notification came through on your phone, you might

0:52:45.000 --> 0:52:47.600
<v Speaker 1>get an alert on your Fitbit. So you might miss

0:52:47.640 --> 0:52:49.440
<v Speaker 1>it if your phones in your pocket, but then your

0:52:49.440 --> 0:52:52.120
<v Speaker 1>wrist vibrates and you take a look and you see, oh,

0:52:52.320 --> 0:52:54.840
<v Speaker 1>someone's texting me, or I just got an email or

0:52:54.880 --> 0:52:57.600
<v Speaker 1>whatever it might be, or I've got a calendar event

0:52:57.680 --> 0:53:03.160
<v Speaker 1>coming up that I should pay attention to. Then Fitbit

0:53:03.320 --> 0:53:06.279
<v Speaker 1>eventually did release a smart watch. They released it in

0:53:07.960 --> 0:53:11.680
<v Speaker 1>and it's called the Fitbit Blaze, and that was really

0:53:11.680 --> 0:53:14.200
<v Speaker 1>the first attempt to Fitbit to take aim at the

0:53:14.239 --> 0:53:17.240
<v Speaker 1>smart watch industry. But at that point they were already saying,

0:53:17.960 --> 0:53:20.839
<v Speaker 1>we wanna wait to see how other companies do it

0:53:21.719 --> 0:53:24.640
<v Speaker 1>and see what's working and what's not working before we

0:53:24.719 --> 0:53:28.360
<v Speaker 1>attempt to do it ourselves, because right now everyone's arguing

0:53:28.400 --> 0:53:31.120
<v Speaker 1>over what a smart watch should even be, So why

0:53:31.160 --> 0:53:33.839
<v Speaker 1>would we make something if we're not even sure that

0:53:33.840 --> 0:53:37.359
<v Speaker 1>that particular form factor is going to ever work out.

0:53:38.480 --> 0:53:41.319
<v Speaker 1>So they did launch the Blaze last year. I know

0:53:41.560 --> 0:53:43.719
<v Speaker 1>that they were very proud of it, but kind of

0:53:43.719 --> 0:53:47.239
<v Speaker 1>surprised that the market didn't immediately respond in a very

0:53:47.239 --> 0:53:51.360
<v Speaker 1>positive way. The reviews were pretty good, but the market

0:53:51.400 --> 0:53:54.480
<v Speaker 1>itself didn't respond in a very enthusiastic way, and that

0:53:54.840 --> 0:53:58.600
<v Speaker 1>frustrated people over at Fitbit. And I think largely that's

0:53:58.600 --> 0:54:01.880
<v Speaker 1>again because even as could sumers, we aren't really sure

0:54:01.920 --> 0:54:04.879
<v Speaker 1>what a smart watch should be, Like, what is the

0:54:04.920 --> 0:54:06.960
<v Speaker 1>thing about a smart watch that's going to make it

0:54:07.000 --> 0:54:11.080
<v Speaker 1>so useful that you absolutely have to have it unless

0:54:11.080 --> 0:54:14.080
<v Speaker 1>you're an iPhone Apple fan? In which case you probably

0:54:14.080 --> 0:54:18.320
<v Speaker 1>buy an Apple smart watch because it had Apple on it.

0:54:18.680 --> 0:54:27.080
<v Speaker 1>Burn back. In two thousand, Fitbit launched its initial public offering.

0:54:27.120 --> 0:54:29.520
<v Speaker 1>It's I p O. In other words, this is the

0:54:29.560 --> 0:54:34.719
<v Speaker 1>process where a privately held company switches over to a

0:54:34.760 --> 0:54:39.160
<v Speaker 1>publicly traded company. It's where you issue stock and people

0:54:39.200 --> 0:54:43.080
<v Speaker 1>can go and buy stock in your company. Before the

0:54:43.120 --> 0:54:45.880
<v Speaker 1>stocks went on the market, before they were going to

0:54:45.880 --> 0:54:50.640
<v Speaker 1>be traded, they were initially valued at twenty dollars a share.

0:54:52.320 --> 0:54:54.880
<v Speaker 1>That was before trading began, but once trading began, the

0:54:54.960 --> 0:54:58.240
<v Speaker 1>value actually shot up very quickly. The actual opening price

0:54:58.320 --> 0:55:02.400
<v Speaker 1>was thirty dollars forty sense. The company ended up getting

0:55:02.400 --> 0:55:06.960
<v Speaker 1>evaluation of four point one billion dollars. You essentially multiply

0:55:07.040 --> 0:55:10.000
<v Speaker 1>the number of shares by the share price. That gives

0:55:10.040 --> 0:55:12.680
<v Speaker 1>you a rough idea of the valuation four point one

0:55:13.120 --> 0:55:18.479
<v Speaker 1>billion dollars. James Park received the honor of being named

0:55:18.520 --> 0:55:22.840
<v Speaker 1>one of Fortune magazines forty under forty in two thousand fifteen.

0:55:23.400 --> 0:55:27.360
<v Speaker 1>He was thirty nine at the time, a year younger

0:55:27.360 --> 0:55:31.200
<v Speaker 1>than me. I can't lie to you, this one hurts

0:55:31.200 --> 0:55:34.680
<v Speaker 1>a bit. I'm sure that in two thousand fourteen I

0:55:34.800 --> 0:55:38.919
<v Speaker 1>was like, seriously considered for inclusion in the forty under forty,

0:55:38.960 --> 0:55:42.000
<v Speaker 1>but I probably missed it by that much. But seriously, though,

0:55:42.320 --> 0:55:45.480
<v Speaker 1>it was another indicator that park In Freedman had been

0:55:46.080 --> 0:55:50.640
<v Speaker 1>on the very tip of the spear that was activity trackers,

0:55:50.680 --> 0:55:54.680
<v Speaker 1>that they had led that charge well. And this was

0:55:54.840 --> 0:55:57.800
<v Speaker 1>also around the time that activity trackers began to dominate

0:55:58.040 --> 0:56:02.319
<v Speaker 1>entire sections of the room floor at ce s every

0:56:02.360 --> 0:56:06.640
<v Speaker 1>year there's an entire area that's just activity trackers, and

0:56:06.920 --> 0:56:11.319
<v Speaker 1>it's enormous. Traditional companies and startups alike, we're getting into

0:56:11.320 --> 0:56:14.560
<v Speaker 1>the game, and the space became really highly competitive. Fit

0:56:14.640 --> 0:56:17.120
<v Speaker 1>that was benefiting from the fact that they had been

0:56:17.120 --> 0:56:20.640
<v Speaker 1>in the market since it first started. But it's also

0:56:20.640 --> 0:56:22.719
<v Speaker 1>important to mention Fitbit. It's not like they were the

0:56:22.760 --> 0:56:25.800
<v Speaker 1>first activity tracker of all time, but they were early

0:56:25.960 --> 0:56:29.600
<v Speaker 1>enough and popular enough to become kind of the defining

0:56:29.719 --> 0:56:33.879
<v Speaker 1>name in the space for a lot of people. Now

0:56:33.880 --> 0:56:37.520
<v Speaker 1>there's another challenge that all activity companies have to face.

0:56:38.320 --> 0:56:40.479
<v Speaker 1>Not only is there a lot of competition out there,

0:56:41.080 --> 0:56:43.520
<v Speaker 1>but there's also the problem of convincing customers to buy

0:56:43.520 --> 0:56:47.280
<v Speaker 1>an activity tracker if they already own an activity tracker.

0:56:48.080 --> 0:56:52.400
<v Speaker 1>So it's not just competition, but also market saturation. Activity

0:56:52.440 --> 0:56:55.000
<v Speaker 1>trackers are designed to last a pretty good long while.

0:56:55.120 --> 0:56:57.719
<v Speaker 1>If they died out super fast, people would be very

0:56:57.760 --> 0:57:01.319
<v Speaker 1>irritated with them. So think about, you know, that whole

0:57:01.360 --> 0:57:05.759
<v Speaker 1>planned obsolescence idea, That strategy of let's make something that

0:57:05.840 --> 0:57:08.120
<v Speaker 1>within a couple of years you absolutely have to replace

0:57:08.200 --> 0:57:11.279
<v Speaker 1>because it will be obsolete, doesn't really work so well

0:57:11.280 --> 0:57:13.759
<v Speaker 1>with activity trackers. A lot of people feel that as

0:57:13.800 --> 0:57:16.720
<v Speaker 1>long as it's still working, that's good enough for them.

0:57:16.880 --> 0:57:19.920
<v Speaker 1>So that means it gets harder and harder to sell

0:57:19.960 --> 0:57:23.000
<v Speaker 1>more of your products. There are more people selling, so

0:57:23.080 --> 0:57:25.240
<v Speaker 1>you've got a lot of competition, and a lot of

0:57:25.280 --> 0:57:28.919
<v Speaker 1>your your target customers already owned one, so it's hard

0:57:28.960 --> 0:57:31.760
<v Speaker 1>to commence them to go and buy a new one.

0:57:33.120 --> 0:57:37.000
<v Speaker 1>That means that and make it even more complicated. Not

0:57:37.080 --> 0:57:40.520
<v Speaker 1>just activity trackers, smart watches too. Right, if you've gone

0:57:40.600 --> 0:57:43.000
<v Speaker 1>in and you've bought a smart watch that happens to

0:57:43.040 --> 0:57:46.040
<v Speaker 1>have some activity tracking capabilities as well as being a

0:57:46.040 --> 0:57:49.440
<v Speaker 1>smart watch, that's even less reason for you to go

0:57:49.480 --> 0:57:52.360
<v Speaker 1>out and buy another activity tracker. So not only was

0:57:52.400 --> 0:57:55.680
<v Speaker 1>Fitbit competing against other activity trackers, but also all the

0:57:55.760 --> 0:57:58.600
<v Speaker 1>smart watch companies that were building in those let's even

0:57:58.640 --> 0:58:03.040
<v Speaker 1>go even more complicated. Smartphones now can act as activity trackers.

0:58:03.440 --> 0:58:05.840
<v Speaker 1>A lot of smartphones have a built in app that

0:58:05.920 --> 0:58:09.160
<v Speaker 1>will count steps and maybe even do things like map

0:58:09.200 --> 0:58:12.440
<v Speaker 1>how many steps you've made against a physical map, or

0:58:12.760 --> 0:58:15.680
<v Speaker 1>tell you how much you've changed in altitude across the

0:58:15.760 --> 0:58:19.480
<v Speaker 1>day based upon where you went. All of these different

0:58:19.520 --> 0:58:23.760
<v Speaker 1>things are direct competitors or indirect competitors with activity trackers,

0:58:23.760 --> 0:58:27.640
<v Speaker 1>which meant that Fitbit was facing more and more pressures

0:58:27.880 --> 0:58:30.960
<v Speaker 1>from outside of its own company and had to figure

0:58:30.960 --> 0:58:35.200
<v Speaker 1>out ways to remain relevant and compelling to customers. Part

0:58:35.200 --> 0:58:39.040
<v Speaker 1>of that was again aiming at people who didn't want

0:58:39.080 --> 0:58:41.960
<v Speaker 1>to spend four hundred dollars five hundred dollars for a

0:58:42.000 --> 0:58:44.760
<v Speaker 1>smart watch. Maybe they'd spend a hundred dollars or a

0:58:44.800 --> 0:58:47.720
<v Speaker 1>hundred thirty dollars for an activity tracker, especially one that

0:58:47.800 --> 0:58:50.800
<v Speaker 1>had enough features in it to set it apart from

0:58:50.800 --> 0:58:55.800
<v Speaker 1>just a predominter. But it does mean that you're constantly

0:58:55.840 --> 0:58:58.760
<v Speaker 1>having to reinvent yourself and find ways of making products

0:58:58.760 --> 0:59:03.000
<v Speaker 1>that are interesting and use full and intuitive, and not

0:59:03.120 --> 0:59:06.680
<v Speaker 1>everything has gone smoothly. In two thousand and fourteen, the

0:59:06.680 --> 0:59:09.800
<v Speaker 1>company had to issue a recall of the fitbit Force,

0:59:10.200 --> 0:59:13.480
<v Speaker 1>which was one of the activity trackers that that you

0:59:13.520 --> 0:59:16.840
<v Speaker 1>would wear using a wristband. In fact, most of fitbits

0:59:16.880 --> 0:59:19.320
<v Speaker 1>trackers use a wristband, but not all of them. This

0:59:19.400 --> 0:59:22.040
<v Speaker 1>was one of them. There were quite a few people

0:59:22.120 --> 0:59:26.760
<v Speaker 1>who reported that they were having problems like skin issues

0:59:27.480 --> 0:59:29.720
<v Speaker 1>after wearing the wrist band, that it was causing them

0:59:29.760 --> 0:59:33.280
<v Speaker 1>to break out in a rash or sometimes worse, into blisters.

0:59:33.760 --> 0:59:37.600
<v Speaker 1>In fact, it got so bad that, according to some reports,

0:59:37.760 --> 0:59:41.520
<v Speaker 1>more than nine thousand people said they were having issues,

0:59:41.520 --> 0:59:43.640
<v Speaker 1>with more than two fifty of them saying that it

0:59:43.680 --> 0:59:47.680
<v Speaker 1>was blistering. And so eventually the company issued a recall

0:59:47.880 --> 0:59:50.640
<v Speaker 1>and discontinued the product and refunded people their money for

0:59:50.760 --> 0:59:54.760
<v Speaker 1>buying it because of these these problems. Now, the likely

0:59:54.800 --> 0:59:59.160
<v Speaker 1>reason behind all this was that the wrist band had

0:59:59.240 --> 1:00:01.200
<v Speaker 1>some components and that they were made out of nickel,

1:00:01.800 --> 1:00:04.240
<v Speaker 1>and a lot of people have an allergy of skin

1:00:04.280 --> 1:00:09.040
<v Speaker 1>allergy to nickel. Uh they can contract dermatitis if their

1:00:09.080 --> 1:00:12.439
<v Speaker 1>skin is in contact with nickel for too long. I'm

1:00:12.440 --> 1:00:14.760
<v Speaker 1>one of those people, and I didn't find out through

1:00:14.800 --> 1:00:17.480
<v Speaker 1>an activity tracker. Actually found out because I had a

1:00:17.520 --> 1:00:21.640
<v Speaker 1>silver plated ring and the the thing that the silver

1:00:21.840 --> 1:00:24.320
<v Speaker 1>was plating was a nickel core, right, it was a

1:00:24.400 --> 1:00:27.080
<v Speaker 1>ring with a nickel core but silver plating, And eventually

1:00:27.080 --> 1:00:29.680
<v Speaker 1>the silver on the inside the ring wore off enough

1:00:30.160 --> 1:00:33.120
<v Speaker 1>where the nickel was making contact with my skin and

1:00:33.160 --> 1:00:35.360
<v Speaker 1>it was a wide band ring and I started having

1:00:35.400 --> 1:00:38.000
<v Speaker 1>this terrible reaction. So if I had bought one of

1:00:38.040 --> 1:00:39.959
<v Speaker 1>those fitbits, I would have been one of the people

1:00:40.000 --> 1:00:44.080
<v Speaker 1>who had that that same issue. That skin irritation. Uh,

1:00:44.360 --> 1:00:47.200
<v Speaker 1>is not fun. And that did not do the company

1:00:47.240 --> 1:00:49.800
<v Speaker 1>any favors. Although the fact that they did issue a

1:00:49.880 --> 1:00:53.640
<v Speaker 1>recall was the right thing to do, um, but it

1:00:53.680 --> 1:00:56.280
<v Speaker 1>was it was not a great publicity move to have

1:00:56.520 --> 1:00:59.400
<v Speaker 1>something that gives your customers blisters all over their wrists.

1:01:00.840 --> 1:01:03.320
<v Speaker 1>And then there's also been some legal battles. There was

1:01:03.560 --> 1:01:06.400
<v Speaker 1>a couple of legal battles with Jawbone, which also makes

1:01:06.440 --> 1:01:11.520
<v Speaker 1>activity trackers, and jaw Bone at one point alleged that

1:01:11.640 --> 1:01:16.360
<v Speaker 1>fitbit had stole stolen corporate secrets from jaw Bone, that

1:01:16.480 --> 1:01:21.680
<v Speaker 1>they were stealing patented work, and so they sued Fitbit.

1:01:22.480 --> 1:01:25.960
<v Speaker 1>Later on, a court actually overturned the patents in question,

1:01:26.080 --> 1:01:29.520
<v Speaker 1>so there was no foundation anymore for the lawsuit because

1:01:30.480 --> 1:01:35.160
<v Speaker 1>the thing that had been a patented idea, the patented invention.

1:01:35.760 --> 1:01:39.280
<v Speaker 1>The patent was invalidated, so there was no longer any

1:01:39.400 --> 1:01:45.560
<v Speaker 1>legal claim for that. That particular lawsuit faded away. In October,

1:01:46.600 --> 1:01:51.040
<v Speaker 1>James Park appeared on the program Mad Money to say

1:01:51.040 --> 1:01:53.280
<v Speaker 1>the company as a whole was going to change direction

1:01:53.320 --> 1:01:55.400
<v Speaker 1>and it was going to transition from what he called

1:01:55.680 --> 1:02:01.080
<v Speaker 1>a consumer electronics company to a digital healthcare company. And

1:02:01.120 --> 1:02:03.320
<v Speaker 1>he went on to say that the social aspect of

1:02:03.360 --> 1:02:06.120
<v Speaker 1>what the company was doing would become more important in

1:02:06.160 --> 1:02:08.560
<v Speaker 1>the future. Now, this may have been in response to

1:02:08.600 --> 1:02:11.320
<v Speaker 1>a really rough year on the market in twenty sixteen.

1:02:11.680 --> 1:02:17.520
<v Speaker 1>Fitbit saw their stock price drop steadily throughout the entire year.

1:02:18.040 --> 1:02:21.040
<v Speaker 1>Uh the high price for a Fitbit stock over the

1:02:21.120 --> 1:02:24.680
<v Speaker 1>last fifty two weeks was eighteen dollars forty three cents.

1:02:24.720 --> 1:02:27.400
<v Speaker 1>Remember it was initially valued at twenty dollars before it

1:02:27.440 --> 1:02:31.080
<v Speaker 1>opened on trading, back when they first went public. It

1:02:31.160 --> 1:02:34.640
<v Speaker 1>went up to thirty dollars forty cents the that day,

1:02:35.920 --> 1:02:39.920
<v Speaker 1>and now it's down to less than much less than

1:02:39.960 --> 1:02:45.280
<v Speaker 1>that actually today, which is March. I checked the stock

1:02:45.320 --> 1:02:47.120
<v Speaker 1>price and when I checked it, it was five dollars

1:02:47.120 --> 1:02:51.360
<v Speaker 1>and thirty seven cents, So pretty massive fall off in

1:02:51.440 --> 1:02:55.560
<v Speaker 1>stock price. The appearance on Mad Money was interesting and

1:02:55.560 --> 1:02:58.640
<v Speaker 1>that Park said that Fitbit could help employers save money

1:02:58.640 --> 1:03:01.880
<v Speaker 1>on providing healthcare plans for employees, and he cited a

1:03:01.920 --> 1:03:05.760
<v Speaker 1>third party study that suggested employees who opted into a

1:03:05.800 --> 1:03:11.680
<v Speaker 1>Fitbit wellness plan would cost employers twenty less than employees

1:03:11.720 --> 1:03:16.120
<v Speaker 1>who did not enter the Fitbit wellness plan. So perhaps

1:03:16.200 --> 1:03:18.680
<v Speaker 1>the future of fitbit is really in designing corporate wellness

1:03:18.680 --> 1:03:21.760
<v Speaker 1>initiatives and the hardware will just kind of supplement that.

1:03:22.960 --> 1:03:26.400
<v Speaker 1>And they've also been on acquisition tear recently. You may

1:03:27.320 --> 1:03:33.400
<v Speaker 1>say that, uh that Fitbit essentially rated Pebble, because it

1:03:33.440 --> 1:03:39.760
<v Speaker 1>wasn't so it wasn't like a standard acquisition. It was

1:03:39.840 --> 1:03:43.400
<v Speaker 1>acquiring very specific parts of Pebble and taking just the

1:03:43.440 --> 1:03:46.520
<v Speaker 1>parts they wanted. Pebble, by the way, in case you

1:03:46.560 --> 1:03:48.240
<v Speaker 1>don't know, it's a company that was known for making

1:03:48.240 --> 1:03:53.120
<v Speaker 1>relatively simple but interesting smart watches and it got started

1:03:53.120 --> 1:03:57.600
<v Speaker 1>originally as a crowdfunding campaign. And the smart watches use

1:03:57.640 --> 1:04:01.960
<v Speaker 1>an e paper display so that they're very low power. Uh,

1:04:02.000 --> 1:04:05.640
<v Speaker 1>and they were able to give you notifications from your

1:04:05.640 --> 1:04:11.040
<v Speaker 1>phone that kind of stuff. Fitbit bought out Pebbles software

1:04:11.080 --> 1:04:15.360
<v Speaker 1>assets for less than forty million dollars according to Bloomberg

1:04:15.400 --> 1:04:19.360
<v Speaker 1>Technology Now sadly, Pebble as a company actually had more

1:04:19.400 --> 1:04:23.160
<v Speaker 1>than forty million dollars in debts, so they didn't even

1:04:23.160 --> 1:04:24.960
<v Speaker 1>get as much as they needed in order to pay

1:04:24.960 --> 1:04:27.880
<v Speaker 1>off their debts in this case, and Pebble had found

1:04:27.920 --> 1:04:31.760
<v Speaker 1>that it was very difficult to thrive in a crowded marketplace,

1:04:32.440 --> 1:04:34.520
<v Speaker 1>and it didn't help that you still have a significant

1:04:34.520 --> 1:04:37.320
<v Speaker 1>population of people who aren't even convinced that smart watches

1:04:37.480 --> 1:04:40.960
<v Speaker 1>are an interesting thing to buy in the first place. So,

1:04:41.000 --> 1:04:44.160
<v Speaker 1>according to Bloomberg, Fitbit sent job offers to about fort

1:04:44.880 --> 1:04:49.120
<v Speaker 1>of Pebble's workforce, meaning did not get an offer to

1:04:49.160 --> 1:04:52.760
<v Speaker 1>work at Fitbit. And as someone who owns a Kickstarter

1:04:53.040 --> 1:04:56.520
<v Speaker 1>edition Pebble watch, this whole thing made me very sad,

1:04:56.960 --> 1:04:59.920
<v Speaker 1>not just because my watch would no longer be supported,

1:05:00.480 --> 1:05:05.360
<v Speaker 1>but I really thought Pebble was something special, and there

1:05:05.400 --> 1:05:07.760
<v Speaker 1>were a lot of folks who were eagerly anticipating Pebble's

1:05:07.800 --> 1:05:09.880
<v Speaker 1>next product, and they were very dismayed to learn it

1:05:09.880 --> 1:05:14.360
<v Speaker 1>will never come. But such as business. In January, Fitbit

1:05:14.440 --> 1:05:18.720
<v Speaker 1>acquired a another smart watch group, a company that had

1:05:18.760 --> 1:05:23.000
<v Speaker 1>started up just in March sixteen called Vector, so it

1:05:23.040 --> 1:05:25.680
<v Speaker 1>wasn't even a year old when Fitbit came in and

1:05:25.680 --> 1:05:28.920
<v Speaker 1>acquired it. Vector's market was to create what they called

1:05:29.320 --> 1:05:33.920
<v Speaker 1>affordable luxury smart watches, so their designs kind of harkened

1:05:33.920 --> 1:05:37.920
<v Speaker 1>back to classic European luxury watches, but at a lower cost,

1:05:38.840 --> 1:05:43.320
<v Speaker 1>and they're smart watches, not your typical quartz crystal action watches.

1:05:44.040 --> 1:05:46.440
<v Speaker 1>And like Pebble, the acquisition appears to have been a

1:05:46.480 --> 1:05:50.000
<v Speaker 1>bid for the software developer talent. The founder of Vector,

1:05:50.120 --> 1:05:53.280
<v Speaker 1>named Andre Petis, said as much, said that the company

1:05:53.400 --> 1:05:57.920
<v Speaker 1>was acquired for this software platform and for its design team.

1:05:57.960 --> 1:06:00.480
<v Speaker 1>So does that mean that Fitbit will soon produce luxury

1:06:00.560 --> 1:06:05.240
<v Speaker 1>smart watches? Probably not. They may set all of these

1:06:05.280 --> 1:06:08.320
<v Speaker 1>assets to work on creating those digital health care solutions

1:06:08.320 --> 1:06:11.000
<v Speaker 1>that I mentioned earlier, and I suspect will continue to

1:06:11.000 --> 1:06:15.560
<v Speaker 1>see Fitbit produce activity trackers and sensors, but that these

1:06:15.600 --> 1:06:19.200
<v Speaker 1>will fit into a larger package of healthcare solutions, so

1:06:19.280 --> 1:06:22.320
<v Speaker 1>that way Fitbit can continue to set itself apart from

1:06:22.360 --> 1:06:25.840
<v Speaker 1>all the competing activity trackers companies out there. They're not

1:06:26.000 --> 1:06:32.000
<v Speaker 1>just selling activity trackers, they're selling health itself. That's me

1:06:32.680 --> 1:06:36.920
<v Speaker 1>saying that not Fitbit, and who knows, maybe in ten

1:06:36.960 --> 1:06:40.280
<v Speaker 1>we will see some luxury smart watch activity trackers from Fitbit,

1:06:40.680 --> 1:06:43.840
<v Speaker 1>and maybe they'll become the must have fashion accessory ofen.

1:06:43.920 --> 1:06:47.200
<v Speaker 1>I wouldn't be shocked to see it happen, and I

1:06:47.320 --> 1:06:49.560
<v Speaker 1>might even save up for one because I lack I

1:06:49.680 --> 1:06:53.560
<v Speaker 1>lack looking all flash while tracking my steps. But we'll see.

1:06:54.600 --> 1:06:56.320
<v Speaker 1>And that's all I've got on Fitbit right now. I

1:06:56.320 --> 1:06:58.880
<v Speaker 1>could have talked a little bit more about some other elements,

1:06:58.920 --> 1:07:03.520
<v Speaker 1>like there was a tie where Apple sold Fitbit products

1:07:03.520 --> 1:07:06.200
<v Speaker 1>in its Apple Store, and then there was a very

1:07:06.240 --> 1:07:08.880
<v Speaker 1>famous time when they said they would stop doing that.

1:07:09.560 --> 1:07:13.000
<v Speaker 1>But you know, honestly, that story is not as interesting

1:07:13.080 --> 1:07:16.360
<v Speaker 1>as it first sounds when you hear the connotation there.

1:07:16.600 --> 1:07:18.960
<v Speaker 1>And besides, I gotta save something for future episodes now

1:07:18.960 --> 1:07:21.520
<v Speaker 1>that I'm going to twice a week again. So I

1:07:21.520 --> 1:07:24.760
<v Speaker 1>hope you guys enjoyed this glimpse into the company Fitbit

1:07:24.880 --> 1:07:27.680
<v Speaker 1>and the explanation of how that technology works. If you

1:07:27.720 --> 1:07:31.000
<v Speaker 1>have questions, comments, or suggestions for future episodes, you should

1:07:31.080 --> 1:07:34.280
<v Speaker 1>let me know send me a note. You can send

1:07:34.280 --> 1:07:37.040
<v Speaker 1>me an email at the address tech stuff at how

1:07:37.120 --> 1:07:39.720
<v Speaker 1>stuff works dot com, or you can always contact me

1:07:40.040 --> 1:07:44.080
<v Speaker 1>through Facebook or Twitter. I use the social handle text

1:07:44.120 --> 1:07:47.920
<v Speaker 1>stuff HSW for the show at both locations. If you

1:07:47.960 --> 1:07:51.240
<v Speaker 1>really want to, you can join me for a live chat.

1:07:51.760 --> 1:07:55.440
<v Speaker 1>I live stream now. People are watching me say this

1:07:55.880 --> 1:07:59.440
<v Speaker 1>at the moment I'm looking run into their little eyes.

1:08:00.200 --> 1:08:02.160
<v Speaker 1>But yeah. You can join me on twitch dot tv

1:08:02.280 --> 1:08:05.160
<v Speaker 1>slash tech stuff and you can watch me stream live.

1:08:05.200 --> 1:08:07.440
<v Speaker 1>It also means you get to listen to the episode

1:08:07.440 --> 1:08:09.280
<v Speaker 1>a couple of weeks before it even comes out, and

1:08:09.320 --> 1:08:12.680
<v Speaker 1>you get to hear me make mistakes and stuff which

1:08:12.760 --> 1:08:15.920
<v Speaker 1>hopefully you don't hear in the published podcast because Dylan

1:08:16.040 --> 1:08:22.360
<v Speaker 1>fixes those. All right, that's it done. I'll talk to

1:08:22.360 --> 1:08:31.519
<v Speaker 1>you again really soon for more on this and thousands

1:08:31.560 --> 1:08:43.520
<v Speaker 1>of other topics. Is it how stuff works dot com