Summary

  • Wearable and fitness tech companies are increasingly turning to subscriptions for additional revenue, a trend exacerbated by Trump’s tariffs that are set to push up prices of gadgets.
  • Garmin and Polar’s switch to subscriptions for additional services previously offered for free has drawn criticism, while Oura Health also faced a backlash when it introduced a subscription for its smart ring in 2021.
  • Tech YouTuber Marques Brownlee also incurred criticism when launching a subscription to his wallpaper app.
  • However, as hardware prices are set to rise, consumers may have to get used to subscriptions as a way for hardware companies to stay viable.
  • “If hardware becomes more expensive, software will be a way for hardware companies to grow,” says subscriptions expert Robbie Kellman Baxter.
  • Companies will need to ensure that they can deliver value through their subscriptions to prevent alienating customers.

By Victoria Song

Original Article