Apple and other similar makers of wearable technology has captured the market with their high end devices such a way to leave most of investors of fitness tracking devices maker Fitbit worried that results in a fall of market share of Fitbit by 18%. This sudden drop is attributed to two factors, one is the Apple’s increasing market share for its wearable technology and the other reason is the disappointment from the new product offering FitBit blaze.
Fitbit introduced this new product Fitbit Blaze, a fitness watch early this month that is priced at $200 and will be made available in March. This product is much cheaper compared to Apple watch available at $350 and up depending on the style and features.
Threat from apple is the main cause of this huge tumble in share. Fitbit had a strong initial public offering just six months ago where the company was valued at $4.1 billion at the market debut and its stock has traded at $52 a share during this summer but unfortunately it closed at $24.30 this 4th January. According to a data research report, the share of Fitbit suddenly slipped at 22% for the wearable technology in the third quarter of 2015 whereas this was 33% in 2014 at the same quarter. Also Apple introduced their Smart watch in the second quarter in 2015 and it ended up gaining 18.6% by the third quarter.
Apart from these, Fitbit is also involved in some patent disputes with some of their competitors. Though it’s still uncertain that the case will go on whose favor but the investors might have not preferred this uncertainty that forced them to take such decision.
However some analyst added that the market of fitness tracker will not be affected by Smart watches in the long run rather people will be attracted to the fitness tracking devices at great rate in China and many other overseas markets.