FitBit was all the darling in 2015, with a strong IPO showing and staggering sales topping 21 million devices. Fast forward to today, and in just over 20 months FitBit's stock is down nearly 60% from it's all-time high. More or less, FitBit provides decent, singular focused devices. While this has been good for FitBit in terms of volume sales, the Mark Cuban question has raised it's ugly head – Are you a viable business or just a clever one-off product?
Simple, low-priced fitness trackers have been an easy, low-risk purchase decision for many, but over time devices like this tend to fall out of favor with consumers, as they gravitate towards multi-functional solutions, even if that requires a higher spend. Enter Apple Watch.
The idea the consumers start with small and simple, moving into refined, higher cost solutions isn't relegated to just wearable devices, rather, it can be witnessed in virtually any market. The Fiat 500 and Smart Car were amazingly popular upon launch. Relatively inexpensive, trendy, with good gas mileage and focused on commuting. Today Fiat can hardly sell a 500, and Daimler owned Smart is about to end their small car run in the U.S.
Consumers once purchased a fridge and freezer combo. Today, it must have an ice maker, water dispenser, LED lighting, multi-cooling zones and an LED display with built-in weather reports.
Most folks get married and purchased a basic 4-door sedan. Then they have kids and get a dog, and upgrade to an SUV that is commuter ready, but also has 4-wheel drive, can tow a boat, has a great roof rack, and holds the entire basketball team. It can do it all, and in relative luxury. Apple Watch is the SUV for your wrist. FibBit is a nice place to start, but it won't make the cut in your next step up – Apple Watch does.
Apple Watch has virtually every fitness app FitBit could only dream of having, but with a depth of information FitBit's cannot do well. Work out music is loaded on my Apple Watch, and now with AirPods, I can bike, run, play tennis (in the racquetball court), lift and shoot hoops, without a corded mess. I check my heart rate, set Indoor Cycling and watch those infamous loops close!
FitBit has done well with their low-cost, focused tracking devices, but users are starting to migrate north to Apple Watch for a wider range of abilities that just work with their iPhones. Once consumer's begin shifting en mass to Apple Watch, AirPods won't be far behind, with multiple colors arriving in the fall of course.
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- You Started With A FitBit, But You'll End With An Apple Watch and AirPods