What Does Fitbit Listing Mean For The Wearable Device Market?

Why is the industry so concerned about the listing of Fitbit? The reason why Fitbit's stock price skyrocketing on the first day of listing is sought after by the market, because its positioning product type and market are easier to form the bursting point of wearable device market compared with smart watches and smart glasses.

As the first unit of wearable devices,

Especially eye-catching, and from its debut on the first day of the stock price soared about 50%, Fitbit did not fail to meet expectations.

Why is the industry so concerned about the listing of Fitbit? What does it mean for the wearable device market when the stock price soared on the first day of listing?

As everyone knows,

The industry is regarded as a new growth point after smart phones and tablet computers.

But it is because of the new growth point that, while the industry is expecting, there is also a dispute about wearable devices, especially after the first GoogleGlass cut, which has exacerbated the industry's uncertainty about the future of wearable devices.

Although Samsung, Motorola, LG and other smart watches have been launched in recent years, the sales of lukewarm does not seem to make the wearable device market find the real flashpoint.

Here, perhaps some people would say, did Apple's AppleWatch launch not inspire the wearable device market? In fact, since apple AppleWatch went public, the industry's estimation of its sales volume is quite different.

According to the latest statistics from market research firm SliceIntelligence, the total sales volume of AppleWatch has been 2 million 790 thousand since it was launched in April.

If this is calculated, the AppleWatch shipments will be much lower than the optimistic 36 million of Morgan Stanley.

In addition, according to users' comparison of AppleWatch, iPad and iPod search results from PacificCrest analysts, Google's interest in AppleWatch is fading away, and its concern is even lower than Apple's near death product iPod.

More importantly, AppleWatch itself also has problems.

For example, the investigation of some AppleWatch users by research company UserTesting shows that nearly 19% of respondents complained about the application of AppleWatch third party, and thought that the speed and quality of the third party application were far less reliable than the native application of AppleWatch, and the third party application was also the biggest problem of tucking up.

There are signs that AppleWatch is not as big as expected before the industry, and the future is also full of variables.

Of course, we do not mean that AppleWatch failed (after all, its sales in smart watches manufacturers have been far ahead), but refers to the previous industry expect AppleWatch sales to promote and stimulate the wearable wearable device market, and then become the role of the ignition point there is a gap.

This is why Apple released the new WatchOS2 system and the second generation AppleWatch on WWDC2015 soon after the AppleWatch release in less than 3 months.

It can be seen that the industry (including apple itself) is in urgent need of AppleWatch improvement and more market sentiment.

Since Apple's performance in the smart watch market is like this, the performance of other manufacturers can be imagined before, and it is not too mild but also reasonable.

Unlike smart watches, the market performance is quite different.

The market is hot.

Of course, this kind of popularity is only relative to the smart watches and smart glasses which belong to the wearable device market.

At present, smart bracelet, smart watch and smart glasses are recognized as the most important representatives of wearable devices in the industry.

It is precisely because of this, the three forms of cold and heat will determine the future of wearable devices.

But as previously analyzed, smart glasses and smart watches have no or very difficult to form explosive force, and whether an industry can have prospects or climate, the initial market explosive force is very important.

According to analysis company Statista statistics, last year, the global smart watches shipped 3 million 300 thousand, of which the number one Samsung shipments was 1 million 200 thousand, compared to the smart Bracelet market, only Fitbit one shipped 19 million.

In the first quarter of this year, Fitbit shipments surged to 3 million 900 thousand, and sales in the quarter exceeded the number of smart watches sold in the world last year.

Here, some people may say that the ASP of smart watches is much higher than that of smart bracelet, and the value of different wearable devices can not be simply measured by sales volume.

But we want to say that in the early stage of an industry's development, how to make the market and more users contact and experience products is the key.

The price is particularly important, especially in the current market and the majority of users are uncertain and unclear about the value of wearable devices (the survey also shows that price and use value are the main factors hindering the popularization of wearable devices), and it is the only way to use the price fuzzy value to make the market and users ultimately find the value through contact.

From these factors, the smart hand is more explosive than other wearable devices.

In addition, from the form and characteristics of wearable devices, compared with smart watches and smart glasses, the function of smart bracelet is simpler, more specific and targeted.

Unlike Apple's AppleWatch and Google's GoogleGlasses functions and applications, the Fitbit and Jawbone brands, which are emerging in wearable devices, are just the opposite. They are standing out in the field of health monitoring.

For them, the function is few and exquisite. Even if they focus on health monitoring, they can constantly refurbish the pattern. This is the capital that can be eaten from apple and Google.

From the initial heart rate records to today's blood sugar, blood pressure, sleep monitoring, Fitbit really did the utmost.

From the point of view of R & D investment, resource allocation and marketing, single focus is more efficient and more efficient than those of many spots. Accordingly, its success rate in the market is higher and the cost of failure is the smallest.

This will undoubtedly attract more manufacturers to join the competition in the wearable device market.

Based on the above analysis, the reason why Fitbit's stock price surged on the first day of listing was sought after by the market. Its product type and market are easier to form the bursting point of wearable device market compared with smart watches and smart glasses. This also reminds manufacturers in related industries how to correctly enter the Wearable device market to ensure maximum revenue and minimum loss.

Of course, the outbreak is not the mainstream of the future, which is why the industry believes that the future Fitbit needs to continue to innovate in order to maintain the leading momentum. It is important to grasp the main reasons for the development trend of the industry.