The two tech giants Fitbit and Apple are in a head to head battle for your wrist space. So far Fitbit has managed to come up on top with a commanding 25% share of the global market for wearables in Q2 2016.
In an interview with CNBC, Fitbit CEO James Park reminded investors that Apple and Fitbit are two very different companies with a very different focus.
“We are a fitness social network that is coupled to hardware, and we are on the cusp of transitioning the mission and purpose of our company from a consumer electronics company to a digital healthcare company,” Park told CNBC.
The company aims to encourage users to become healthier and more active as demonstrated by more than 200 clinical studies illustrating the benefits of wearable technology. Park further added that, it is the social aspect of the product that drives Fitbit’s growth.
Essential reading: Choosing the right Fitbit tracker
The San Francisco outfit has been trying to transition more into corporate wellness. A study published earlier this week by Springbuk looked at the impact of wearable technology as part of an overall wellness strategy.
The analysis shows that after two years, employees who opted into a wearable program cost on average $1,300 or 25% less than employees in the control group. Cost reduction is potentially highest with less active individuals. The total cost for less active users decreased by 59% over the two-year period, compared to a 22% decrease for those who were more active.
Fitbit’s stock has not had an easy ride in 2016. It initially fell by more than 50%, but has recovered by 17% since July.
“Fitbit Charge 2 is the No. 1 best-selling fitness tracker on Amazon. You know, we launched two other great products earlier this year – Alta and Blaze – and if you remember, the investor reaction to Blaze was … I couldn’t understand it at all. Even today, Blaze is the No. 1 selling smart watch on Amazon,” he said.
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