Fitbit Inc (NYSE:FIT) is a fairly new player in the tech industry and so far, the company’s successes have come through its only product, a wearable fitness monitor watch. Unfortunately, a recent move from Google (NASDAQ:GOOGL), could pose as a severe threat to Fitbit and its devices. Google has made android wear compatible with iOS, providing the wearable fitness gear market with a cheap and better alternative to Fitbit. However, at the moment, the company is making progress in capturing a larger share of the market.
Recently, Fitbit announced its support for the HIPAA guidelines, thereby broadening its customer base. HIPAA regulations are the main laws that govern the use of health information by insurance companies. By adhering to these guidelines, the company ensures that it would not misuse the consumer’s health data in any way, nor disclose it to a non-related entity. This means that corporations can safely use Fitbit to monitor the health of their workers and properly assist the insurance companies with legitimate claims.
Currently, the compatibility of android wear with iOS is very limited and there are a number of glitches that Google needs to fix, before it can pose any real threat to Fitbit. However, android wear works superb with android phones, which means that Fitbit has already lost that part of its market. This would also mean that the company has a very limited amount of time to grab hold of the remaining market, mainly corporate entities that offer health insurance to its employees. Unfortunately, even this would be a very difficult task for Fitbit, since android wear, at the moment, is fairly low priced, as compared to Fitbit’s Charge. The only thing android wear lacks is its support for the HIPAA guidelines. Currently, Fitbit has been reporting a yearly growth of 2.53%, compared to the industry average of 0.1%.
Fitbit Inc (NYSE:FIT) closed at a share price of $40.59, after recording a surge of 1.78% in its share value during the September 18 session.