The wearable technology industry is bracing for a significant shift towards subscription-based services, as companies like Garmin and Polar introduce new premium features behind paywalls. This trend is expected to accelerate in the coming months, driven in part by President Trump's tariffs, which will increase the cost of gadgets and push companies to focus on software and services for revenue growth.

The recent announcements from Garmin and Polar have sparked outrage among customers, who are resistant to paying for features that were previously free. Garmin's new subscription tier offers AI-powered summaries, while Polar's premium subscription provides training plans. However, customers are worried that the best features will be hidden behind paywalls, and that the free versions will no longer receive updates.

This shift towards subscriptions is not new, but it's gaining momentum. Apple's 2019 services event marked a significant turning point, as the company began to prioritize services over hardware sales. The trend is now spreading to other industries, including wearables, smart home devices, and even cars. BMW, for instance, faced backlash when it introduced a monthly subscription for heated seats.

Experts predict that Trump's tariffs will exacerbate the subscription wars, as companies seek to offset the increased cost of hardware production. "If hardware becomes more expensive, software will be a way for hardware companies to grow," says Robbie Kellman Baxter, author of The Membership Economy. This could lead to a fundamental change in how companies design and manufacture their products, prioritizing long-term stability and software flexibility over hardware sales.

However, the success of this strategy depends on companies' ability to convince customers that the cost is worth it. Simply adding new features without providing value could alienate loyal users. In the fitness tech space, athletes have criticized Strava's AI summaries as useless, and similar backlash could be seen in other industries.

The implications of this shift are far-reaching, and consumers may need to get used to paying for services that were previously free. As the wearable technology industry continues to evolve, it remains to be seen whether companies can strike a balance between providing value and generating revenue through subscriptions.

In the meantime, consumers can expect to see more companies introducing subscription-based services, and the lines between hardware and software will continue to blur. As the industry navigates this new landscape, one thing is clear: the subscription wars are only just beginning.