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Fitbit Is Banking on This for Long-Term Growth

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Part 2
Fitbit Is Banking on This for Long-Term Growth PART 2 OF 9

Fitbit’s Ionic against Apple and Other Big Smartwatch Guns

Fitbit’s wearable market share fell to 13% in 2Q17

Last year, Fitbit (FIT) led the wearables market with a share of over 24% at the end of 2Q16. But market research firm International Data Corp, or IDC, has estimated Fitbit’s share in the worldwide wearable market to be ~13% at the end of 2Q17.

Fitbit’s device shipments have fallen over 40% YoY (year-over-year), from 5.7 million units in 2Q16 to 3.4 million units in 2Q17. Fitbit’s shipments fell 38% YoY in 1Q17 as well.

Fitbit’s Ionic against Apple and Other Big Smartwatch Guns

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By comparison, China’s (FXI) Xiaomi now leads the wearables market with a share of 13.4% and unit shipment growth of 13.7% YoY in 2Q17 to 3.5 million units. IDC has estimated that Apple’s (AAPL) share is 13%, as shipments have risen significantly—by almost 50% YoY in 2Q17—to 3.4 million units.

Other major players include Garmin (GRMN) and Fossil, which have shares of 5.4% and 4%, respectively. Overall, smartwatch shipments rose 10.3% YoY to 26.3 million devices in 2Q17.

According to IDC, “Fitbit finds itself in a period of transition. Early leaks and the recent official announcement of the Fitbit Ionic will help cement the company’s place in the growing smartwatch market…[but] short-term growth remains challenged as the product portfolio is vast and undifferentiated.”

Apple Watch 3 priced at $329

Apple recently unveiled the Apple Watch Series 3, with features such as built-in cellular capability, which helps users to stay connected, make calls, and receive texts without an iPhone while working out or doing other physical activities. The Apple Watch 3 (only cellular) is priced at $329, whereas the device with GPS and cellular is available for $399. Apple has now reduced the price of its Apple Watch Series 1 to $249.

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