Apple has been making efforts to enhance the Apple Watch’s features
In the previous part of this series, we discussed how Fitbit’s (FIT) initial public offering met with a big response from shareholders. Fitbit manufactures a variety of wearable devices that track calories burned and daily steps taken. It also indicates sleep quality and duration. The Apple (AAPL) Watch, on the other hand, doesn’t have all the features of a fitness tracker, but it still can measure heart rate.
The Apple Watch is the biggest threat to Fitbit despite its being released only recently. In April, Apple released the Watch in nine countries, including the United States and the United Kingdom. It continues to progress in making the Apple Watch more attractive to users.
A few weeks back, Apple and IBM (IBM) added three new apps that the Apple Watch will support. These apps include the healthcare app Hospital RN, the energy and utilities app Field Connect, and the public safety app Incident Aware. We covered this news in Apple and IBM Introduce 3 New Apps for Apple Watch.
At the recent Worldwide Developers Conference in San Francisco, Apple released a software update for its Apple Watch named watchOS2. Previously, the apps ran on iPhones paired with the Watch via Bluetooth. This update enables faster app access on the Apple Watch.
The Apple Watch is only second to Fitbit for buyer preference for fitness bands
Despite the recent launch of the Apple Watch, it has already become a sought-after fitness device. According to a survey of 5,000 people conducted in May by investment firm Robert W. Baird & Co., as reported by AppleInsider, 10.6% of people mentioned that they want to buy a Fitbit. The Apple Watch was second, at 5.9%, while Jawbone and Garmin (GRMN) devices followed the Apple Watch in preference, as the chart above shows.
All this data shows that the Apple Watch could be the biggest threat to Fitbit in the future. If you’re bullish about the Apple Watch’s prospects, you could gain diversified exposure to Apple by investing in the Technology Select Sector SPDR (XLK), which invests 18% of its holdings in Apple.