Heading into this yr, FitBit appeared poised to expand its leadership position within the booming fitness tracker area. Even so, weak financial performances and questionable design and style decisions quickly sapped the market's enthusiasm for this one-time consumer electronics darling.
Nonetheless, FitBit not long ago received 1 encouraging piece of information when word arrived that the second generationcheap piaget watcheswill in all likelihood be delayed till later this 12 months.
Apple Watch 2 delayed
Apple plans to hold its much-touted spring merchandise event March 21. Learning the date from the event is fun, but of far greater importance, Apple has reportedly also scuppered its plans to unveil the second generation Apple View in the event. For context, Apple utilised its 2015 spring solution event to demo the first generation Apple Watch. Given Apple's common 12-month item cycles, this led a lot of observers to assume-alas, to no avail-that the Apple Observe 2 would observe a similar pattern. Media reports do peg Apple as featuring new colors and textures for Apple Observe bands at its March event, though these updates are believed for being solely cosmetic.
Instead, the rumor mill now places the second-generation Apple Watch as launching at some stage in fall 2016. Importantly, although, the organization has nonetheless to announce anything officially, so investors need to not necessarily put full stock in these rumors. No matter if this delay, if accurate, reflects a shift in marketing tactics or product or service growth issues is anyone's guess. Either way, one particular takeaway right here lies beyond dispute-FitBit wins frombuy rado watchesdelay.
FitBit during the crosshairs?
The extent to which Apple's smartwatch efforts threaten FitBit has generated plenty of debate in recent months. Having said that, regardless of your perspective over the matter, all tech investors must agree that the delay of a probable competitor benefits FitBit a single way or another.
At its most apocalyptic, the Apple Watch two could prove a category killer, not simply for FitBit, but for activity trackers in standard. Rumors have long circulated that Apple intends to integrate innovative biometric sensors into its smartwatches. In this situation, this never-before-seen functionality could revolutionize not simply fitness tracking, but also preventive healthcare at the same time. Apple continues to be aggressive in hiring experts and acquiring start-ups with relevant knowledge at the intersection of human health and technologies. The firm also enjoys effectively unlimited resources with which it could pursue the variety of breakthrough technologies that could make FitBit's latest units seem like the modern equivalent of eight-track players. Having said that, given the degree of difficulty quite a few fitness trackers have experienced in perfecting sensors like heart fee monitors, FitBit incorporated, it appears less than likely that Apple will pull a rabbit out of its hat together with the Apple Observe 2.
What's additional, shipment data also supports the thought that smartwatches and fitness trackers enjoy a distinct boundary in the eyes of numerous individuals. For example, FitBit sold 21.four million products in CY 2015, even though IDC estimates claim Apple sold 13 million Apple Watches final 12 months. These numbers are possible to shift in coming years, but this apparent delineation in between fitness trackers and smartwatches suggest FitBit need to be at the very least relatively insulated from Apple's threat, even if subsequent gadget generations add compelling functionality.
In the end of the day, lots of individuals only will not wantbreitling watches for sale. So although Apple as well as other smartwatch OEMs surely shouldn't be overlooked as an significant threat to FitBit, the delay in the Apple Observe need to assist additional buttress the fitness tracker firm during the yr ahead.
There is a thing big happening this Friday
I do not know about you, but I always pay attention when certainly one of the most beneficial development investors from the planet gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the top performing in the planet as reported by the Wall Street Journal) and his brother, Motley Fool CEO Tom Gardner, are going to reveal their up coming stock recommendations this Friday. Collectively, they've tripled the stock market's return more than the final 13 years. And when timing isn't almost everything, the history of Tom and David's stock picks displays that it pays to obtain in early on their ideas.
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