LISBON — Samsung’s foray into smart rings isn’t concerning the boss of the product category’s pioneer, Oura — in fact, Tom Hale says he’s seeing a boost in business.
“I’m sure that a major tech company making an announcement saying: ‘Hey, this is a category that matters. It’s going to be something that’s big.’ I think it’s probably helpful,” Hale told CNBC in an interview this week.
“In terms of the impact on our business, it has made zero impact. If anything, our business has gotten stronger since their announcement.”
In a comprehensive interview with CNBC at the Web Summit conference in Lisbon, Hale discussed Oura’s plans to offer users new areas of insight, his approach to new devices, and the company’s ambitions for international growth.
Oura’s main product is the Oura Ring 4, a smart ring equipped with sensors that track various health metrics. This allows users of the Oura app to gain insights into their sleep quality and daily readiness.
Founded in Finland in 2013, Oura is recognized as a pioneer in the smart ring market by analysts. Since launching its first product, the company has sold over 2.5 million rings. CCS Insight projects that Oura will close the year with a 49% share of the smart ring market.
The sector is seeing new competition, with Samsung—the world’s largest smartphone manufacturer—introducing its Galaxy Ring this year. Analysts suggest that this move has increased the visibility and popularity of smart rings among a wider audience.
Hale aims to position Oura as both a “health company and a science company” with a focus on creating “clinical grade” products. The company is pursuing approval from the U.S. Food and Drug Administration (FDA) for the ring’s use in diagnostics, though Hale did not share extensive details. He emphasized that Oura’s emphasis on health and science distinguishes it from its competitors.
“If you’re actually thinking [of] yourself as a healthcare company, it is very different in many ways and different postures you might take towards data privacy. … So instead of being like a tech company where data is some sort of oil to be extracted and then used to create some kind of advantage of network effects, we’re really a healthcare company where your data is sacrosanct,” Hale said.
Also read | Meta Reduces EU Facebook and Instagram Subscription Fees by 40% to Comply with Regulatory Requirements
Oura’s business model relies on selling the hardware, as well as on a $5.99 monthly subscription service that allows users to get the insights from their ring. Oura says it has nearly 2 million subscribers.
“We look more like a software company than we do look like a hardware company. And I think that’s a function of the business model, and the fact that it’s working. Our subscribers are continuing to pay,” Hale said.
Oura explores nutrition as its next major focus
Oura utilizes data collected by its ring to offer users insights centered on their sleep patterns, physical activity, and daily readiness.
Hale revealed that the company is currently experimenting with nutrition tracking, enabling users to photograph their meals and log them into the Oura app. In addition, he highlighted Oura’s recent acquisition of Veri, a metabolic health startup that uses data from continuous glucose monitors—small devices inserted into the arm—to provide insights into blood sugar levels. According to Hale, combining this data with Oura’s food tracking capability could help users understand how specific meals impact their glucose levels.
While many glucose monitors on the market today require insertion into the skin, some believe that developing non-invasive glucose monitors for wearables could be a game-changer. However, Hale cautions that achieving this is a challenging feat.
“The idea that a wearable [device] will get there, I think, has definitely been a Holy Grail, and like the Holy Grail, they may never find it, because it’s a very difficult problem to solve with any kind of accuracy,” Hale said.
“Never say never. Certainly, technology continues to advance and all the capabilities continue to advance,” he added.
New hardware and AI
While Oura only sells rings currently, Hale sees the company developing new products in the future. He declined to elaborate.
“I think we’ll undoubtedly see other Oura-branded products, beyond the ring,” he promised.
He added that the company aims to collaborate with other devices, even if they are not part of Oura’s own hardware lineup.
Similar to other hardware companies like Apple and Samsung, Oura is exploring how advancements in artificial intelligence can offer users more tailored insights. Smartphone manufacturers have discussed the concept of “AI agents”—assistants capable of predicting user needs.
In line with this, Oura is testing an AI product known as Oura Advisor.
“Think of it as the doctor in your pocket that knows all the data about you,” Hale said.
International push
Hale’s presence at the Web Summit in Lisbon underscores his push to raise Oura’s brand awareness in markets outside of the U.S., especially as more people learn about smart rings.
“I think the point about the category being something that people are learning about, the unique benefits of that maturity, is in our favor. We’re expanding internationally,” Hale said.
He said he is particularly “excited” about venturing into Western Europe, including in countries like the U.K., Germany, France and Italy. Looking even further forward, Hale said an initial public offering for the business is not currently on the table, adding that operating as a private company gives Oura more “freedom.”
“I really enjoy the freedom that we get as a private company. We’re accountable to our investors and our shareholders, but they’re willing to let us operate with a lot license,” he said. “And if we decided we wanted to turn unprofitable because we wanted to invest in owning some category of healthcare software, it’ll be fine. They would be happy for that.”
For more such updates, click here.
