Can Fitbit's Blaze Compete?

This week, Fitbit Inc FIT unveiled its latest product, a fitness smart watch, at the Consumer Electronics Show (CES 2016) in Las Vegas.

The new watch, called the Blaze, appeared to fall flat with investors, as many wondered whether the firm's attempt to cross over into the smartwatch market could be successful. Over the past week, Fitbit's shares fell more than 20 percent as investors questioned the company's latest direction.

What Makes Blaze Different?

The Blaze is a departure from the company's more simplistic bands in that it features a touch screen display and allows users to link the watch to their phone in order to receive calendar alerts, phone calls and text messages using the watch. Like Fitbit's other products, the Blaze is also able to track heart rate and sleep patterns.

Related Link: Analysts At Odds With Market Over Fitbit

Not Quite As Smart As The Competition

The problem with the Blaze lies in its lack of functionality. Fitbit has made its name among consumers as an activity tracking firm. One of the reasons consumers choose a Fitbit band over a full blown smartwatch is the fact that the bands are small and unobtrusive. The company's products are also cheaper than smartwatches, so they offer an alternative for those who want to track fitness metrics, but don't need a smartwatch's other features.

However the Blaze represents a cross-over product that does some, but not all of what other smartwatches can do. For one, the watch doesn't allow users to respond to texts or phone calls from the watch. Another drawback is the fact that the watch only supports Fitbit created services, making it much less feature-rich than other watches available. Not only that, but the watch lacks a GPS tracker, something that consumers looking for a fitness tracker would likely appreciate.

Where To Go From Here

While the Blaze represents a valiant effort by Fitbit to enhance its products, most saw the new watch as a flop. By adding functionality, Fitbit is becoming a direct competitor with the likes of Apple Inc. AAPL, making it more difficult to measure up.