Holders of FIT Stock Will Find This Reassuring
After GoPro’s disappointing performance, eyes are now set toward the biggest unicorn IPO in 2015—Fitbit Inc (NYSE:FIT). Here’s one chart that could change your outlook on FIT stock in 2016.
Gartner has released a new report on wearable technology gadgets this week. The report predicts worldwide sales for nine key categories of wearable products, including smartwatches, wrist bands, and sports watches, among other products.
Gartner is predicting all of these three segments to grow significantly in the next year. (Source: “Gartner Says Worldwide Wearable Devices Sales to Grow 18.4 Percent in 2016,” Gartner, February 2, 2016.)
Fitbit falls in the wristband category, but it has overlapping features with the two categories mentioned earlier. Its biggest competitor in the wearables industry is Apple Inc.’s “Apple Watch,” which falls in the smartwatch category.
|Forecast for Worldwide Sales Growth|
The Gartner wearables industry forecast suggests the smartwatch segment will see the biggest growth this year. However, it is expected to slow down by 2017, despite outpacing the other two segments. The same trend is visible for sports watches.
However, Fitbit’s segment of wristbands is seeing steady sales growth.
According to the report, the industry’s massive growth is expected to attract new entrants. Gartner predicts that Fitbit will face stiffer competition in the coming year. Nonetheless, Gartner cites Fitbit as the market leader in the industry.
Meanwhile, Fitbit is maintaining its relevance in the industry through new and improved product launches.
Fitbit has launched its new wristband, the “Fitbit Alta,” this week. The band is an affordable fashion-forward fitness tracker, primarily aimed at the female consumer market. Last month, Fitbit launched another fitness band, the “Fitbit Blaze,” which directly competes with Apple Watch in its design and target market.
Gartner’s forecast following Fitbit’s new product launches bears a positive sign for FIT stock in the coming year.