Fitbit Inc (NYSE:FIT) has maintained its leading position in the wearables market for many years. It lately sparked high talk globally after it lost its ground to Xiaomi and Apple Inc (NASDAQ:AAPL).
On Monday, latest International Data Corporation (IDC) report revealed that both Xiaomi and Apple are tied at the top in regards to the first-quarter 2017 shipment volumes. Each of the two was reported to have shipped about 3.6 million units.
Something that will most probably stir worries among the various investors is the fact that Fitbit has been pushed back to the third position where it only has 3 million shipped units. As a matter of fact, most of the top investors appreciate it when a company’s stocks exhibit consistency. However, they continue to hope for the best.
A lot of the concerned parties to this moment do not comprehend the reason behind Fitbit’s growth retrogression. Statistics indicate that the provider’s shares have lost a mammoth 81.8% from the June, which is the exact time when the company took to trading on the New York stock exchange.
No one would have expected Fitbit to be going through what it is going through at the moment. Sources indicate that it has been facing wild competition at both the low- and high-end products despite the fact that it had been providing a wide range of devices at different price points.
The multi-functional Apple Watch has turned out to be a “business nightmare” for the Fitbit devices. Apple’s multi-functional Apple Watch sticks out at the high end and on the lower end the company’s largest competitors are Garmin Ltd (NASDAQ:GRMN) and Xiaomi.
But Fitbit Inc is not relenting in this struggle yet. It intends to establish some counter strategies and some of its top executives have said that will happen through the buying of smaller companies and the roll out of new products. Business dynamics are normal and no one gets to stay at the top always. Despite the challenges, Fitbit will most probably get back to its feet and be able to compete effectively once again.
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