Fitbit Inc (NYSE:FIT) has lately been a target of great uncertainty, by both analysts and investors alike. After flying high for four sessions straight, the company fell by 5.7% during the September 21 session. FIT was able to maintain its position, following the recent purchase of 326,000 devices by target. However, the bigger problem at hand is the competition that Fitbit faces from wearable android devices. Furthermore, a smaller company has started to emerge, with a device similar to that of Fitbit, Jawbone.
Jawbone has been around in the wearable fitness tracker market for quite some time now, but more recently the company made some major updates to its flagship device, which could make it a much better option than Fitbit. The Up3 device, launched in November last year, had a lot more to offer than the most expensive Fitbit wearable, the Surge. However, the new device had failed to deliver on its promises. The device was not waterproof and it was definitely not user friendly. Furthermore, the large number of sensors on the device did not reflect on any clear advantages related to fitness.
Recently, Jawbone announced a firmware upgrade, one which would take care of the tweaks and glitches in the device, but only the ones that were actually identified. However, there still remains the problem of the asking price of $179 for the product and a number of needless sensors. Even though Jawbone is a private firm, but until smartwatches continue to be an “imperfect substitute” for dedicated fitness wear, this company’s portfolio is the only threat that Fitbit investors should be wary of. However, most analysts still believe that Fitbit will very soon be knocked out of the market by smartwatches, but that is not happening anytime soon.
Fitbit Inc (NYSE:FIT) completed the September 23 session, with a decline of 1.01% in its share value, to close at $39.09. The company currently has a market capital of $8.17 billion and a 52-week high of $51.90.