Fitbit is well positioned to directly challenge Apple in smartwatch arena
On Wednesday, January 11, Apple Insider reported that Fitbit Inc. (NYSE:FIT) seeks to challenge Apple Inc. in the smart-watch market. For this purpose, the company has acquired two big companies recently, which reportedly position it well in the market to directly challenge the Cupertino-based tech giant. Consequently, Fitbit shares traded in green yesterday, gaining about 1.77% during active trading session.
According to Apple Insider, Fitbit purchased Indie watch company, Pebble, in December. With this deal, FIT has direct access to engineering talents, software, and patents, that it requires to challenge and fight Apple (NASDAQ:AAPL) in the wearables market.
Also, the $1.57 billion business recently acquired another European smartwatch business, Vector. The newly acquired company provides Fitbit with leadership expertise as it is led by former executives of big traditional watcher makers, such as Timex, Citizen, and Bulova. Moreover, the small startup has developed two luxury devices consisting of e-ink screens, a 30-day battery life, and proprietary operating systems.
While the wearables company has yet to reveal how it will use its acquisitions, it has the potential to create a new branded smart watch, far more advanced than its existing product, Blaze. Vector has already stated that it aims on leveraging Fitbit’s global market and experience, to produce new amazing products by incorporating the company’s unique technology, to provide better experiences and features.
Although Fitbit’s current product line holds certain similarities with Apple, it differs strikingly on functionality. However, it may face some difficulty in challenging Apple when it comes to App store and rich notifications feature. The company has already unveiled plans to roll out its own app store in the near future. But to compete with Apple, it has to develop world-class hardware platform that allows third-party apps to function efficiently. This is where Vector and Pebble are expected to help the company.