Bad Sign For Fitbit: Fitness Bands Are Getting Smarter And Cheaper

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Detwiler Fenton reported Fitbit Inc FIT is caught in headwinds as competitive brands become smarter and cheaper.

Fitbit came onto the public scene on June 18, 2015, and seemed to corner the market of fitness brands. But Detwiler Fenton notes that even though the company has "gained share of overall Fitness bands, if you include Smart Watches that also have the same fitness functions then the picture tightens."

Related Link: Chowdhry: Fitbit Is A Piece Of Junk

In addition to Apple Inc. AAPL's Apple Watch, Samsung and other peers are entering the space that used to be solely Fitbit's. Apple holds an "iconic segment no matter if one considers its Watch a success or not, it present a boulder in the way of FIT," the analyst noted. Apple Watch has additional features that add value for consumers to buy the Watch rather than Fitbit.

"At the same price, function will generally win" the analyst said.

Fitbit is being "squeezed" from "cheaper competition from beneath and increasingly more technical outpacing from evolving Smart Watch competitors." As the markets merge, Fitbit's exclusive hold on the Fitness Bands will wane considerably.

Shares closed Tuesday at $14.17.

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Posted In: Analyst ColorAnalyst RatingsTechApple WatchDetwiler Fenton
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