Fitbit ( FIT Quick Quote FIT - Free Report) is firing on all cylinders to fight off competition in the wearable world on the back of robust technologies and innovative products. Recently, the company added new features to recently released products — Fitbit Sense and Fitbit Versa 3 — as part of its software update to OS 5.1. Post the update, both the devices now offer Google Assistant and Amazon’s ( AMZN Quick Quote AMZN - Free Report) Alexa. In addition, both the devices can now take calls on the watch if the phone is nearby, dictate text replies from Android phones and access more health data while asleep. Fitbit remains optimistic about enhanced product offerings and expects the new features to further aid demand. Increasing Competition
Fitbit was a pioneer in the wearable space and market leader for a long time, and people liked it for its simplicity and privacy. However, over the past few years, the company’s growth has been hindered by rising competition from major tech companies like
Apple ( AAPL Quick Quote AAPL - Free Report) , Garmin ( GRMN Quick Quote GRMN - Free Report) and Xiaomi. However, Fitbit is making all efforts to regain some market share with new releases and updates. The new feature to take quick calls and respond to messages with voice makes the new Fitbit Sense and Fitbit Versa 3 more competitive with the likes of the Apple Watch Series 6, Apple Watch SE and Galaxy Watch 3. Alphabet, which is one of the very few companies that can actually stand up to Apple, agreed to buy Fitbit for $2.1 billion. However, the acquisition remains pending, subject to certain approvals. The deal is expected to be completed by year-end or may also be delayed to 2021. Solid Product Portfolio: A Key Growth Driver
Fitbit continues to expand its portfolio with product launches, which will bode well for the company in the near term.
Last year, it announced the availability of its fitness-focused cheapest smartwatch, Versa Lite, which helps users track their health like the earlier released Versa. In addition, the company announced new versions of cheaper trackers including the Fitbit HR, capable of tracking heart rate, and Ace 2, which can track activity in children. With rising concerns surrounding healthcare and fitness, as well as increasing chronic diseases, such partnerships and product launches will help fortify Fitbit’s competitive position, along with expand the customer base. Zacks Rank
Currently, Fitbit has a Zacks Rank #3 (Hold). You can see
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