Garmin CEO states that Bounce and 8 Pro buyers inevitably get the LTE Plan, so why not bundle it?
…anyone that buys those products is probably going to sign up for the additional services…that’s exactly what we’re seeing…look at Bounce, for example, it’s not just a watch for kids. It’s a way for parents to monitor their kids and to communicate with them..when you buy that product, you will absolutely sign up for the service that goes along with it. [Pemble, CEO]
Analysis: Fenix 8 Pro only had one job: add 4G LTE and satellite connectivity to the non-Pro model. It did that and then bagged the new features that leveraged the new connectivity. Bounce already had 4G LTE connectivity in its predecessor; it boosted its connected capabilities, adding services like Amazon Music and two-way calling. Garmin’s CEO confirms what we knew: there was virtually no point in buying the 8 Pro model if you didn’t also get the LTE and inReach (satellite) package to go with it. Bounce 2 had similar intents, making minor additions elsewhere, like with a larger display. Again, parents buy Boune primarily to stay in contact with their kids, which only works effectively with an LTE plan.
The effective price of Fenix 8 Pro is even higher than advertised. The CEO knows it.
Take Out
Garmin’s CEO is transparent: the premium attached to Fenix 8 Pro and Bounce 2 models is engineered to be worthless without the recurring monthly LTE/inReach plan. The current business model prioritises highly profitable, predictable subscription revenue over a simpler, all-in-one purchase for the consumer. While this gives a slight ‘out’ to avoid the monthly cost, it ultimately creates a much higher effective price for the buyer who wants the unique, connected features of the watch.
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