The wearable fitness giant Fitbit foresees a slowdown in this quarter, according to the company they already have warned that a year-over-year sale growth will slow dramatically this quarter. The company sees the dwindling popularity of the brand as a threat especially this quarter just before the year ends.
A recent report from Dougherty & Co. analyst Charles Anderson states that Fitbit has been decreasing a lot of online traffic and a waning Google searches in the U.S. Anderson noted that worldwide queries on Google about fitness related gadgets and accessories are boosted by 16 percent on a year-over-year in October and up to 11 percent in November. However, the Fitbit’s website has not been receiving the same the traffic as stateside searches decline to 2 percent in October and 5 percent in November.
A hopeful prospect the company sees on the Dougherty & Co. report is that a huge amount of app download and app activity is rising. A 9 percent increase for IOS users with a year-over-year app-store activity in November whilst Android users rose at 14 percent. Anderson noted that the Garmin’s Connect app records a bigger year-over-year again last 2015 in the market of fitness wearable, and according to the app-store rankings we can see Garmin and Fitbit holding well.
Fitbit Acquires Pebble
The fitness watch manufacturer Fitbit plans to expand by closing deals on a reported Pebble Technology Corp. acquisition. An estimated $40 million or less deal is in the oven for the companies, the company showed interest on Pebble’s software assets and since the Pebble is swerving inside a debt hole. Fitbit wants to overhaul their game to better compete with other smart watch manufacturers, notably with Apple’s smart watch.
While other assets from Pebble including the product inventory and server equipment, will be sold in a separate deal. The deal is again centered on Pebbles on the acquisitions of the startup’s software engineers and testers, and mostly, the intellectual property that Pebble’s watch operating systems, watch apps, and cloud services.
If the deal foregoes, Pebble will halt the productions of its products; the Pebble 2 which is already started shipping out to the Kickstarter backers, and the Time 2 and Core and will probably looking to refund through crowd funding website. The Time 2 is a sleek marine-grade stainless steel with a bigger than normal screen while the Core is a non-watch GPS wearable for runners.
On the other, 1.1 million Apple Watches were shipped this year a noticeable decline of 71 percent as per last year’s 3.9 million. The companies that are currently on the top 5 list of wearable fitness and smart watches are Fitbit, Xiaomi, Garmin, and Samsung all saw annual gains. All of the companies aside from apple sell low-cost step tracker which brings the successful run along with the simple and solve a single problem as compared to the Apple Watch.
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