Story image

Fitbit dominates wearables market

14 Jul 15

​Fitbit has experienced positive growth in the share market, dominating in the highly competitive wearables space.

Bob Peck, SunTrust Robinson Humphrey analyst, says Fitbit has expanded its market share from 59% in 2013 to its current ‘dominant’ market share of 85% in the US. On an international front, the company has a leading market share of 34%.

Furthermore, Fitbit shares are poised to increase due to the ‘massive’ total addressable market and a current low penetration rate, says Ross Sandler, Deutshce Bank research analyst.

On top of this, Peck says Fitbit had a ‘strong’ revenue growth rate of 150% and ‘solid’ gross margins of 45-50%.

The company will likely see its revenue surge from an estimated $1.4 billion in 2015 to $3.3 billion in 2018, according to Matthew McClintock, Barclays analyst.

Consumer spending on wearable devices is expected to grow to $30 billion by 2019, which is faster than any other segment in the consumer electronics market, according to IDC.

According to Peck, investors are now evaluating the long-term potential of Fitbit, as well as the wearables sector, and are seeing how the company can evolve beyond hardware into services.

Sandler says the sector is in a ‘rapidly evolving’ state, with a ‘strong and prolific’ ecosystem around health and fitness, which is also boosting Fitbit’s shares.

He says, Fitbit represents the first ‘pure play’ company to bring in the ‘Connected Life’ era, which could potentially be the biggest trend seen in global consumer technology.

According to Travis McCourt, Raymond James analyst, Fitbit is 'almost unequalled' in its growth potential among other peers, but its current valuation 'largely reflects this reality'.

Hands-on review: Intel Core i7 8086K Limited Edition
Whilst I’ve seen commemorative coins and stamps, I’ve never seen a commemorative CPU. Intel’s Core i7 8086K is exactly that.
Mobile Infrastructure market sees fastest growth since 2014
The report from Dell’Oro shows that while the vendor rankings for the top three vendors remained unchanged with Huawei, Ericsson, and Nokia leading.
Hands-on review: Logitech G1 Pro Gaming Headphones and Mouse
For the serious gamer, this kit will have you happily spreading mayhem in glorious surround sound.
Report - Nine tips for tech companies to maximise growth
“Marketing and sales are critical to the successful growth of any business, but especially for those in the tech industry.”
Deloitte bolsters AWS offerings with CloudinIT
“By joining forces we can help even more organisations adopt cloud technologies and put their customers at the heart of their digital agendas.”
Citrix acquires micro app platform Sapho
Sapho’s micro applications improve employee productivity by consolidating access to tools, activities and tasks in a simple and unified work feed.
HPE expands AI-driven operations
HPE InfoSight extends select predictive analytics and recommendation capabilities to HPE servers, enabling smarter, self-monitoring infrastructure.
Dimension Data nabs three Cisco partner awards
Cisco announced the awards, including APJ Partner of the Year, at a global awards reception during its annual partner conference.