Wearable technology has had its ups and downs, and it seems like it is still trying to find its way.
But companies like Fitbit (NYSE: FIT) and Apple (NASDAQ: AAPL) are trying to make wearables a way of life… the next device you can’t live without.
Without a doubt, Fitbit has been the leader in fitness trackers. It made its market debut last June with an IPO price of $30.40. However, since the IPO, the stock has plunged 56%.
It began trading this week at 24% lower than last month. That’s not something you’d expect from a company that just released two new devices.
Fitbit’s losing streak could be the result of some recent news about how fitness trackers don’t accurately read a person’s heart rate. Just this month, Cleveland Clinic came out with a study that reported on the inaccuracy of wrist fitness trackers.
Wrist fitness trackers use optical sensors to detect the blood that’s flowing through your veins, and because the tracker is on your wrist and is farther away from your heart, it reduces the accuracy. Additionally, if light hits the sensor as you move your wrist, that reduces the chance of an accurate heart rate detection.
The best way to know your heart rate is from chest-worn monitors. These types of devices are used by serious runners, cyclists, and other advanced athletes.
Chest-worn monitors are similar to an electrocardiogram (EKG). The monitor has a transmitter that’s attached to a belt and worn around the chest, and then there’s a receiver that’s worn on the wrist. The transmitter picks up the signal and sends the electromagnetic signal data to the wrist.
These monitors aren’t easy to wear and are often too bulky for the average person who’s trying to be more active. A fitness tracker on the wrist is more ideal for these people — it’s sleek and a less obvious way of tracking your physical fitness.
Trackers motivate inactive people to be active. They also have a level of social interaction — the Fitbit app connects users with their friends and allows users to “challenge” each other. Everyone loves a little competition, right? Especially against friends or coworkers.
These challenges give people the incentive to choose the stairs over the elevator, or to get up and walk around instead of sitting all day.
Dr. Gillinov, a cardiac surgeon and innovator at the Cleveland Clinic, said, “The wrist-worn monitors are fine for recreational use… These sort of monitors are more of a consumer-driven device.”
These devices help a person become less sedentary and more conscious of their physical well-being, which could lead them to become even more serious about exercise and their health.
Dr. Gillinov had this advice for fitness track wearers: “Don’t make too much of a single reading, or even two readings… Do several readings because you can’t count on these devices to be accurate every time.”
What’s Ahead?
It’s true: wearing a Fitbit gets a little tiresome, especially if you’re a person who likes to accessorize. The lack of choices is a big part of why people stop wearing it… it gets boring.
Trust me, my brother bought me a Fitbit fitness tracker last Christmas. Sure, it was exciting at first. I had a step goal to meet every day, and that gave me motivation. But after a few months, it was exhausting trying to remember to put it on every day. And honestly, it didn’t always go with what I was wearing. So eventually, I stopped putting it on.
Well, here’s some good news for everyone who owns a Fitbit and likes to accessorize…
The company has introduced new accessory bands for its Fitbit Alta fitness tracker, allowing customers to switch out their bands for more fashionable alternatives. And as early as next week, customers can start ordering these new alternatives… just in time for the holiday shopping season.
These bands range from as little as $14.95 to $295.
Fitbit has partnered with Public House and Vera Wang to continue in this direction of fashionable replacements bands, ultimately opening itself up to whole new group of upscale customers who want fashionable options for their fitness trackers.
This is obviously one way to revive business and keep customers connected to their devices for a lot longer. Customers who are investing money into these accessories will be less likely to change devices or stop wearing the device. If they’ve already spent money on new bands, they’ll feel obligated to keep wearing the device.
The outlook for Fitbit’s holiday season is promising. It has two new devices and will be releasing more accessories to be paired with its devices — great presents and great stocking stuffers.
While yes, news of the less-than-perfect heart rate reading could effect how some people view the brand, it probably won’t cause significant damage. Fitbit continues to open itself up to more profits by introducing accessories for its devices, while also partnering with well-branded companies — creating all-around brand loyalty and commitment from customers.
Until next time,
Jennifer Clark
Pro Trader Today