Fitbit Gains Competitive Edge in Wearable Space With Charge 3

FitbitFIT is firing on all cylinders to bolster presence in the wearable and fitness world on the back of its robust technologies and innovative products.

Recently, the company unveiled its latest and advanced wearable called Charge 3 which features its advanced algorithm technology and extended battery life of up to seven days.

Further, it comes with swimproof design, a larger touchscreen display and an inductive button that provides expanded space for the addition of more sensors in the device. It also provides smartphone notifications.

With the latest move, Fitbit expands its family of Charge devices. Consequently, its product portfolio expands and this bodes well for its market share. Notably, Fitbit's growth has been hindered by the rising competition from the major tech companies like Apple AAPL , Garmin GRMN , Alphabet's GOOGL Google and Xiaomi.

Notably, the shares of Fitbit have returned 12.9% over a year, underperforming the industry 's rally of 41.6%.

However, the company remains optimistic about its enhanced product offerings and expects the newly launched products to aid demand.

Interesting Fitness Features to Drive Demand

Fitbit Charge 3 motivates the users to chase their goals by providing more than 15 exercise modes to set their target for distance covered, time and calories burnt. Moreover, its expressive and high resolution grayscale graphics with animations are appealing and motivating for people who are concerned regarding their fitness.

Apart from these, the latest wearable strives to provide better healthcare management with its advanced technology. It features 24/7 PurePulse heart rate technology of Fitbit which is more advanced with more than nine trillion minutes of heart rate data.

Further, it contains SpO2 sensor which tracks oxygen level in blood, sleeping disorders, allergies and asthma.

We believe the company will be able to strengthen the adoption rate of its products, thanks to its strong efforts toward technical innovation. Consequently, this will expand customer base and drive its top-line growth.

Fitbit, Inc. Revenue (TTM)

Fitbit, Inc. Revenue (TTM) | Fitbit, Inc. Quote

Improving Competitive Position

The fitness tracker space is currently experiencing growing proliferation of wearables globally, due to comfort and ease that these products provide in tracking fitness.

According to data from Allied Market Research, the global market for fitness tracker is projected to reach $62.13 billion by 2023 at a CAGR of 19.6% between 2017 and 2023.

Given the immense growth opportunities, the tech giants like Apple, Garmin and Google are taking strong efforts to strengthen their market position.

iPhone maker's Apple Watch is gaining traction as it enables users to track their health metrics as well as share that data with their physicians. Furthermore, the company recently launched the watchOS 5 beta.

Google is gearing up to launch a Pixel Smartwatch this October. Further, Qualcomm recently confirmed that it is working on a new wearable chipset for Google's Wear OS smartwatches.

Recently, Garmin announced the synchronization of Cardiogram heart health app with all Garmin wearables featuring optical heart rate such as fenix, Forerunner and vivo devices.

Considering the above-mentioned points, Fitbit's latest movie strengthens its competitive position.

Further, the company's recently announced Sleep Score beta which will be available to the users from the later part of this year will aid it in gaining a competitive edge over Google's Verily. Fitbit's SpO2 and Sleep Stages & Sleep Insights also aid it in this endeavor. Notably, Google's Verily has partnered with ResMed to form a joint venture in order to develop a technology that can be utilized for the diagnosis and treatment of sleep apnea.

Sleep Score provides a clear picture of the user's sleep pattern, quality and factors that need to be worked on with the help of a nightly score.

We note that Fitbits's continuous efforts toward enhancing product offerings will help it in gaining momentum in the market further.

Currently, Fitbit carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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