FitBit and the Apple Watch Can Coexist, For Now

TL;DR

Smartwatches and fitness trackers continue to grow and coexist in the market, providing consumers with a choice between different feature sets and price points.

Transcript

Vincent Shen: Are there any other trends in the data that you wanted to mention? Dylan Lewis: Yeah I think something that’s worth noting is it seems like there are kind of two distinct product categories here. Something that I've always been really interested with as far back as the Fitbit IPO and once we started getting rumors about the Apple Watc... Read More

Key Insights

• ❓ Two distinct product categories, smartwatches and fitness trackers, coexist and show growth in the market.
• 😥 Consumers have a choice between different feature sets and price points.
• 🛟 Fitness trackers can serve as an introductory device before investing in a higher-priced smartwatch.
• 🥺 Technology advancements may lead to the merging of health tracking features into smartwatches, resulting in more consolidation in the market.
• ❓ Dedicated devices tend to be replaced by all-encompassing devices with wider functionalities.

Questions & Answers

Q: Is there a possibility of the two distinct product categories merging into one?

While smartwatches and fitness trackers currently cater to different needs, there may come a point where technology allows for the merging of both functionalities at competitive price points. The history of tech gadgets shows that all-encompassing devices tend to win over dedicated devices.

Q: What factors contribute to the coexistence and growth of both smartwatches and fitness trackers?

The availability of different feature sets and price points plays a crucial role in attracting consumers to both product categories. Some consumers may choose fitness trackers as an introductory device before committing to the higher cost of smartwatches.

Q: Are lower-priced fitness trackers affecting the popularity of higher-end smartwatches?

While fitness trackers are more affordable, higher-end smartwatches with wider functionality still attract a separate segment of consumers. However, as technology advances, there may be more consolidation in the market, leading to the integration of health tracking features into smartwatches.

Q: Can the coexistence of smartwatches and fitness trackers be compared to the decline of dedicated digital cameras due to smartphone cameras?

Similar to how smartphones rendered basic digital cameras less popular, there may be a decline in low-end fitness trackers as smartwatches become more versatile and offer health tracking features. Higher-end equipment, like DSLRs, will likely remain popular for those seeking better quality and specific functionalities.

Summary & Key Takeaways

• Smartwatches and fitness trackers are two distinct product categories that can coexist and grow in the market.

• Shipment volumes for both categories have increased sequentially and year-over-year, indicating consumer interest.

• The availability of different feature sets and price points allows consumers to choose between simple fitness tracking and smartphone-like experiences.