Fitbit, Inc. (FIT - Free Report) recently announced that its latest wearable called Charge 3 is now available globally.
Notably, Charge 3 had garnered a great response at launch. It comes with swimproof design, a larger touchscreen display and an inductive button that provides expanded space for the addition of more sensors in the device. It has an extended battery life of up to seven days.
Priced at $149.95, the new Charge 3 will be available for sale beginning Oct 7 at major retailers all over the world, online and at the company’s website. Reportedly, the initial pre-order sales remained strong, indicating strong adoption of the new device.
With the latest move, Fitbit expands the availability of its new device, further increasing its market share. Consequently, it also expands its product portfolio, which bodes well for the company.
The company remains optimistic about its enhanced product offerings and expects the wide availability of Charge 3 to aid demand.
Notably, shares of Fitbit have lost 12.4% on a year-to-date basis against the industry’s rally of 36.7%.
Other Interesting Fitness Features
Fitbit Charge 3 motivates users to chase their goals by providing more than 15 exercise modes to set their target for distance covered, time and calories burnt. It features 24/7 PurePulse heart rate technology of Fitbit that is more advanced, having in excess of nine trillion minutes of heart rate data.
Further, it contains SpO2 sensor that tracks oxygen level in blood, sleeping disorders, allergies and asthma.
We believe that the company will be able to strengthen the adoption rate of its products, thanks to its strong efforts surrounding technical innovation. Consequently, this will expand customer base and drive its top-line growth.
Improving Competitive Position
The fitness tracker space is currently experiencing growing proliferation of wearables globally, due to comfort and ease that these products provide in tracking fitness.
According to data from Allied Market Research, the global market for fitness tracker is projected to reach $62.13 billion by 2023 at a CAGR of 19.6% between 2017 and 2023.
Given immense growth opportunities, tech giants like Apple (AAPL - Free Report) , Garmin (GRMN - Free Report) and Google (GOOGL - Free Report) are undertaking strong efforts to strengthen their market position.
iPhone maker’s Apple Watch is gaining traction as it enables users to track their health metrics as well as share the data with their physicians. Furthermore, the company recently launched the watchOS 5 beta. Google is gearing up to launch a Pixel Smartwatch soon. Further, Qualcomm recently confirmed that it is working on a new wearable chipset for Google’s Wear OS smartwatches. Recently, Garmin announced the synchronization of Cardiogram heart health app, with all Garmin wearables featuring optical heart rate such as fenix, forerunner and vivo devices.
Considering the above-mentioned positives, Fitbit’s latest move strengthens its competitive position.
Currently, Fitbit has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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