Why Apple Watch Is Losing To Fitbit

    • Bloomberg
    • Publish Date: Dec 10 2016 2:19PM
    • |
    • Updated Date: Dec 10 2016 2:19PM
Why Apple Watch Is Losing To Fitbit
The wearables market leader in terms of unit sales, Fitbit, sells seven products — all wristbands or clip-on activity trackers. Fitbit doesn''t believe in watches.

Just two years ago, smartwatches — especially the Apple Watch — were expected to kill off simple fitness bands that only measure physical activity. Instead, fitness trackers are growing at smartwatches' expense. That makes sense: Users don't want to pay extra for unnecessary or duplicating functionality. 

On Dec. 5, the tech market analytics company IDC released a report on wearables showing that Apple Watch's share of unit shipments was down to 4.9 percent in the three months through September. It was 17.5 percent in the same quarter of 2015. Apple sold 1.1 million of the gadgets, down from 3.9 million. Samsung almost caught up, selling 1 million smartwatches. All the other major wearable makers produce fitness bands, cheap smartwatches or both, rather than upscale, made-to-impress watches like Apple's or Samsung's. 

Apple has contested the data, claiming that Apple Watch's sell-through — actual retail sales, as opposed to the number of units the company gets into stores - is at a record high. Coupled with IDC's numbers, though, that can only mean that Apple flooded retailers last year, and that's why it didn't have to supply as many units in 2016. 

Apple watch: Expensive and niche 
Although Apple, which makes the most expensive smartwatches, is capturing a much bigger share of the wearable market's monetary value than of its unit shipments, the Apple Watch and other premium watches are becoming niche products. Otherwise, Apple would be releasing sales data, which it has refused to do.

The wearables market leader in terms of unit sales, Fitbit, sells seven products — all wristbands or clip-on activity trackers. Fitbit doesn't believe in watches. Bloomberg News reported this week that Fitbit is close to a deal with the smartwatch-maker Pebble — one of the market's first movers, initially crowdfunded on Kickstarter.com. But Fitbit isn't interested in any of Pebble's products, just in its software and the part of its team that works on it. 

Fitbit is cheap and gets the job done 
Fitbit appears to have had the right idea from the start. It is geared toward a particular use — exercise. Its most expensive device sells for $250, and it has GPS tracking, music controls and message notifications, but all its other functions are fitness-related. Most of the company's other products are about half the price or less. 

A Fitbit gadget doesn't pretend to be anything else than what it is, nor does it have hundreds of apps and various cute watch faces like the Apple Watch. It doesn't require a user to learn anything because it's simple and intuitive. An Apple Watch needs you to get used to it and learn some new moves. And its price range starts just about where Fitbit's ends. 

To a growing number of people, the watch is a quaint accessory. And even though Apple's version (and Samsung's several versions) have all the activity-tracking functions of a Fitbit, many buyers see no point in all the extras — nice design, pretty strap and a bunch of apps. A smartphone doesn't do what a fitness band does — but it beats the smartwatch as a communication device and a portable computer.

Even in this day and age, people sometimes still care about strict functionality and a low price. 

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. 
 

What's your take? Let's know your views ion the comments section below. 

 


 

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Comments

Himanshi Dhawan Saffron Public School

I also think that apple watches are having an exorbitantly high price as compared to fitbits. And if one is getting two same things for different prices, then it''s obvious that one will buy the cheaper one. So, there are no doubts that apple watch is losing to fitbit not only in terms of price but also in terms of accessibility.

Onkarpreet Bhavan Vidyalaya

Yes. I agree. The cost is what matters. No one will prefer costly products over the cheaper ones.

Bhavana Jaison Atomic Energy Central School No 2

The issue with the Apple Watch is it doesn''t contain enough unique functionality to make it a "must have" product.

Pragya RUKMINI DEVI PUB. SCHOOL(PITAMPURA)

Apple has been providing quality products therefore its value is high.Whereas Fitbit provides us all wristbands or clip-on activity trackers at a much more economical rate . Thus, people prefer to buy Fitbit''s products rather than Apple. The cost is what matters.

Nishi Upadhyay BHARTI PUBLIC SCHOOL (SWASTHYA VHR)

price does make a huge difference.

Ritvik Baweja BAL BHARTI PUBLIC SCHOOL (PITAM PUR

Well in this modern era, having a wristband is a basic need and almost every fitness freak today has a smart watch. Hence people always prefer the alternative that is cheap, affordable and easy to accessible. Therefore it matches the criteria of a good fitness tracker and is in the reach of all the people and is a cracker and tough competitor in the market for Apple Watch.

Abhi Dabas Bal Bharati Public School Pitampura

price - $$$ apple is too expensive $$+

J.PRIYADHARSHINI REVOOR PADMANABHA MATRIC.HR.SEC.SCHOOL

I think that Fitbit is better when compared to apple smartwatches when compared to price and most people don''t like to afford for costly gadgets!!!!!!!!!!!!!!

Jessica Kabuli CARMEL CONVENT SCH SEC 9 CHD

The cost factor is what makes all the difference. Though apple watches are now a status quotient but, people are pretty much aware and prefer fitbits over apple watches.

Sree Narayana Vidya Bhavan Other

yes! I agree.The cost of apple watch with the cost of one apple watch we can buy cheaper one watch of 20 to 30

Raju kumar Sree Narayana Vidya Bhavan

Because it is too expensive..

SRIDHAR KUMAR MODEL MISSION HIGH SCHOOL

the watch is best but instead of that we can afford a cheap and best watch

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