Huge database of users
We have seen that Fitbit (FIT) is one of the major players in the wearable device market, with a share of 13.7%. Other major players include China’s (FXI) Xiaomi, Apple, Huawei, and Garmin (GRMN) with shares of 13.7%, 10.3%, 6%, and 4.9%, respectively. Fitbit has sold over 75 million devices to date and currently has one of the largest health and fitness databases. Fitbit has 105 billion hours of heart rate data, with 6 billion nights of sleep and 3.3 billion hours of exercise recorded.
Fitbit’s vision is to make everyone healthier, and it believes that its penetration in the wearables space could increase. Fitbit aims to reward and motivate people with gamified features and a supportive social network.
Expanding product offerings
Fitbit launched its first smartwatch in 4Q17 with a focus on health and fitness. Fitbit wants to leverage its huge database to provide insights and improve health and would like to monetize this data by providing solutions. Last year, Fitbit was selected by the FDA as one of nine companies to participate in a program geared toward speeding up development of digital therapeutics and new digital health applications.
The FDA believes digital therapeutics could increase wearables’ market penetration. Digital therapeutics could drive less cyclical and more stable revenue streams in the future.