Fitbit Inc (NYSE:FIT) and Apple Inc. (NASDAQ:AAPL) are at it again with the battle for the best wearable devices from their latest offerings.
Apple recently revealed its latest Apple Watch known as the Apple Watch Series 2 whose reveal caused Fitbit shares to a new two-week low. The two companies have been competing with each other to capture the wearables market with their watch offerings and it looks like the battle is on again. Apple’s new watch features two highly requested features that were not present in the 2015 model.
The new Apple Watch has inbuilt GPS and it is water resistant, thus providing a more appealing offering with a price point of $369. Apple Watch Series 2 is not considered much of a threat to the Blaze smartwatch from Fitbit which is priced at $199, especially from a pricing viewpoint. However, the first generation Apple watch will be more threatening to the Blaze Smartwatch because its price will go down to $269.
While the two companies started out with different strategies for their target market, their recent wearables suggest that they are shifting their strategies and venturing into each other’s territories. Apple is now including smart watch features such as fitness tracking to target fitness junkies. Fitbit, on the other hand, is moving into the premium segment through fashionable accessories and smartwatch notifications such as those offered by the Apple Watch.Such a shift in strategy from the two companies means the competition between them is growing stronger.
“Apple appeared to break from touting Apple Watch’s health applications, instead introducing sports features to cater to runners and swimmers,” stated Toni Sacconaghi, an analyst at Bernstein Research.
Apple still maintains a strong command of the market though Fitbit has been pulling up its socks.
“Apple is clearly focused on gaining share in the fitness community,” said Sherri Scribner, an analyst at Deutsche Bank AG (USA) (NYSE:DB).
Fitbit shares had a 0.54% drop and closed the previous trading session at $14.72 with an average volume of 9.63 million shares traded. Apple shares closed the day at $105.52, with a drop of 2.62%.
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