FIT shares fell 6.5% last week
Shares of consumer technology (QQQ) company Fitbit (FIT) fell more than 6.5% last week, which ended June 9, 2017, to close at $5.15. In the trailing 12-month period, FIT shares fell 65.0% after falling 75.0% in 2016. The stock has fallen more than 29.0% since the start of 2017.
Apple and Samsung gain market share in the worldwide wearables space
Last week, IDC (International Data Corporation) published its report for the worldwide wearables market for the quarter ended March 31, 2017 (or 1Q17). Overall shipments in the wearables market rose 17.9% YoY (year-over-year) from 20.9 million units in 1Q16 to 24.7 million units in 1Q17.
Fitbit earlier occupied the top spot in the wearables market. However, shipments fell 37.7% in 1Q17 to 3.0 million units from 4.9 million units in 1Q16. Market share also fell drastically from 23.2% in 1Q16 to 12.3% in 1Q17.
The top players in this space include China’s (FXI) Xiaomi with a 14.7% share in 1Q17 compared to 17.9% in 1Q16. Xiaomi’s shipments fell 3.3% YoY in 1Q17 to 3.6 million units. Apple’s (AAPL) shipments rose 64.1% YoY from 2.2 million units in 1Q16 to 3.6 million units in 1Q17. Its market share rose from 10.5% to 14.6% in the same period.
Samsung’s (SSNLF) shipments also rose significantly by 91.0% YoY (year-over-year) to 1.4 million units. Its market share rose from 3.4% in 1Q16 to 5.5% in 1Q17. Garmin (GRMN) was the fifth-largest player with a share of 4.6% at the end of 1Q17.
Ramon Llamas, IDC’s research manager, stated, “Fitbit finds itself in the midst of a transformation as user tastes evolve from fitness bands to watches and other products. This allowed Xiaomi to throttle up on its inexpensive devices within the China market and for Apple to leverage its position as the leading smartwatch provider worldwide.” He went on to say, “However, by no means should Fitbit be removed from the wearables conversation. With a user base of 50 million, a strong presence within corporate wellness, and assets that keep it top of mind for digital health, Fitbit is well positioned to move into new segments and markets.”