The big digital health news yesterday was that Nokia was acquiring Withings. There’s no better sign of the massive market opportunity that is the digital health space. It also seems to show a huge pivot in the business model of Nokia. Long a phone manufacturer, they’re now using their massive war chest and understanding of the mobile industry to enter into the digital health space in a big way with this acquisition.
From the Withings perspective, I’ll be interested to see what Nokia can do as far as distribution of the Withings product lines. Withings has had a strong presence in the digital health space for a while, but there’s definitely a land grab happening between all the various players in the industry. We’ll see if having Nokia around can accelerate their acquisition of market share.
I’ll be interested to see where Nokia takes this as well. Is this the first of many digital health acquisitions? Withings has a great digital health product line, but we’re seeing an explosion of health sensors that could compliment their product line. Nokia has much deeper pockets than Withings, but are they willing to acquire companies to build up their war chest of health sensors? It will be fun to watch it play out.
I wonder if Nokia’s ties to Microsoft will be a help or a hindrance to Withings. Certainly they’re going to have to hook into the iOS and Android platforms. They already are, but will this acquisition make those integrations harder? Will they miss out on opportunities with these 2 major phone types because of the new connection to Nokia?
I’m always interested which large companies are starting to enter the digital health space. We’ve seen a ton of work from large brands like Adidas, Nike and Under Armour for example. iFit has been working really hard on the space and they come out of NordickTrack. Fossil acquired Misfit. I’m sure there are bunch more I missed, but such an extraordinary diversity of companies working in the space.
Who else do you think will enter the space? Any companies you think that will become the leaders?