“Wearable fitness device maker Fitbit intrigued investors late Thursday when it revealed stellar sales growth and profitability in its initial public offering prospectus with the U.S. Securities and Exchange Commission,” Patrick Seitz writes for Investor’s Business Daily. “But with Apple’s Apple Watch and other smartwatches with health tracking features poised to cannibalize fitness band sales, Fitbit could face a difficult road ahead.”
“A report out this week from Technalysis Research predicts that smartwatches will begin eating into sales of fitness bracelets like those made by Fitbit starting this year. The report sees smartwatches passing fitness bands in dollar sales this year and unit sales next year,” Seitz writes. “”So much of the capabilities of those fitness bands is going to be integrated into smartwatches, and people aren’t going to buy both,” Technalysis analyst Bob O’Donnell told IBD. But Fitbit could respond by doing its own smartwatch, he said. ‘My guess is they’ll move into that category. You’ll see that evolution going forward.'”
MacDailyNews Take: Because so-called smartwatches have done oh-so-well without ecosystems.
“Worldwide fitness band sales are forecast to reach 20 million units in 2015, up 54% year over year. But the growth rate is predicted to slow to 40% in 2016, 21% in 2017, 18% in 2018 and 10% in 2019 before declining 11% in 2020, Technalysis said,” Seitz writes. “Meanwhile, smartwatch sales are seen hitting 19 million units worldwide this year, up 352% from 2014. Smartwatch unit sales are projected to grow 58% in 2016, 40% in 2017, 29% in 2018, 20% in 2019 and 18% in 2020.
Read more in the full article here.
MacDailyNews Take: Technalysis is forecasting unit sales of 77 million smartwatches and 39 million fitness bands in 2020; smartwatches will be a $13.5 billion annual market vs. $3.2 billion for fitness bands. We’ve iCal’ed this forecast to revisit in early 2021.