Fitbit will get one other vacation bump and much-needed respiration room
The vacations have come and gone and — as traditional — Fitbit received a little bit of a lifeline.
As soon as once more, everyone seems to be shopping for Fitbits for items. We received’t know precisely what number of, however in case you simply take a fast take a look at the obtain charts, Fitbit hit the highest of the App Retailer (even within the presence of the gargantuan promotions of Tremendous Mario Run). In reality, it seems prefer it’s a fairly well-liked reward for folks too — there are bumps within the App Retailer chart round Mom’s Day and Father’s Day.
And it couldn’t come too quickly. Wall Road is giving Fitbit a little bit little bit of a breather with the refill round 7% after it’s tumbled nearly 75% this yr. The yr has not been type because it’s had loads of poor efficiency and likewise determined for some purpose it will enter the smartwatch market. The entire wearable market itself isn’t doing that effectively, with eMarketer drastically slashing its development forecast from 60% to 25% for the yr in comparison with 2015.
Fitbit continues to iterate, come out with new merchandise, and it’s a minimum of searching for solutions within the more and more difficult market. The corporate snapped up the belongings from Pebble and a number of the staff, which rolled out one of many first true smartwatches because of a massively profitable Kickstarter marketing campaign. It wasn’t an ideal final result for Pebble, however a minimum of it signifies that Fitbit is in exploration mode past its regular trackers.
For Fitbit, the problem curve is barely going to get steeper as Apple doubles down on the health features of its watches. It has a Nike+ model of the watch and is clearly making an attempt to lock down the health monitoring market alongside the smartwatch market. Apple has all the time been identified for premium merchandise, and whereas we haven’t seen any numbers it’s potential that individuals might merely be keen to pay extra for a health tracker that goes past simply checking steps.
Nonetheless! Fitbits appear to be good items, and folks appear to maintain shopping for them. We’ll see the place the whole lot lands when the corporate reviews its earnings within the first quarter, and it’s going to wish to point out some type of main breakout with the intention to not solely present it may well survive within the presence of extra strong merchandise just like the Apple Watch but additionally slowing adoption for wearables typically. Thankfully for Fitbit, it additionally ended one authorized battle with Jawbone, in order that’s one much less factor to fret about going ahead.
Merry Christmas, Fitbit. You continue to have a variety of work to do for Wall Road, however for now you get a breather.