They are not good times for manufacturers of devices wearables. At the end of last year, we saw how the pioneer of intelligent watches came down. Pebble sold the company to an anxious Fitbit to the final leap to a market that still has failed to make a dent. Although in the acquisition of the hardware part is set aside to focus on the operating system.
Their physical quantification bracelets became popular a few years ago, but the public seems to have tired of them. The origin of your current situation is the launch of the Apple Watch of second generation. Let’s look at why.
A single trick pony
Fitbit began ten years ago. During this time you have entered up to 14 products that measure different types of activity. With the passage of the years, they have improved in features, price and battery. In addition to adding features to its companion app. One of its most popular products was the Fitbit Flex, we analyze in Applesfera few years ago.
Wearables company has enjoyed great popularity, especially in his native United States. A couple of years, its bracelets were the gift Christmas star. In mid-2015, he took advantage of the thrust of its products to exit stock and raise more money to be able to continue growing.
Fitbit is following in the footsteps of companies like Jawbone, GoPro and Pebble: trapped by your own product
We even saw how the company presented its first smart watch, the Fitbit Blaze. However, the plan has not gone as expected by the company. The company’s shares fell after its presentation, a reaction to what investors interpreted as the attempt to compete against Apple Watch face.
Fitbit tried to move to the market of intelligent watches with the Blaze due to the high competitiveness of much more affordable bracelets. As the bracelet of Xiaomi, which is sold at a fraction of any Fitbit and that is eroding the company in the lower part of the market. But the Fitbit Blaze has been in a map activity bracelet. Nothing else.
The time is proving that Fitbit is an a single trick pony.
More problems on a 2017 promising for Apple
Bloomberg yesterday echoed a report of a company’s research about the progress of the Fitbit. He stated that Fitbit would have stopped the production their bracelets in mid-December. The reason? The products were accumulating on the shelves of retailers.
Fitbit product demand would have waned significantly last Christmas, something that the company’s own CEO had already prevented. His intention at the end of 2016 was convert to Fitbit digital health company. Translation: market activity bracelet is comoditizando and the only way to earn money (for Fitbit) is becoming a company of services of health software.
Pebble acquisitions by its software and operating system and the recent vector, a startup of Romania, which had an unexpected success last year, point in this direction. The Fitbit situation contrasts with the Apple Watch.
The clock from Apple went on sale almost at the same time that Fitbit began trading on the stock exchange. While the official sales figures have not been unveiled yet, it is not the failure that many thought. Rather to the contrary. The launch of the Apple Watch of second generation seems to have hit the nail. For months, Apple not has been able to cope with the production of the new generation.
Apple Watch Series 2 and watchOS 3 point directly to the jugular of Fitbit: sport and the physical quantification
The high demand for the Apple wearable has to do with the twist that it has given the company the product. watchOS 3 gives much faster opening of apps and reorganizes key aspects of the operating system. In addition to that focuses more on the aspects of physical quantification. The bastion of Fitbit.
A bastion as the second generation of Apple Watch has been responsible for taking the assault. Thanks to the addition of GPS, water resistance, greater autonomy and a much faster chip. Not to mention a more affordable version which basically updated the first generation with the second chip.
Smart Watches market plunges while Apple Watch continues their March as if does not happen anything. We’ll see what lies ahead this 2017 and how it ends this struggle for our dolls.