If you’d bet on wearables a decade ago, here’s what you’d have now
Ever wondered what would have happened if you’d taken a thousand bucks and placed your bets on the wearable tech boom ten years ago? Let’s find out.
Remember when fitness trackers were the hot new thing and smartwatches seemed like gadgets from a sci-fi movie? That was 2014, and what a ride it’s been since then. Some companies that jumped into the wearable tech game hit the jackpot, while others probably wish they could turn back time. Want to know just how wild the journey has been?
Let’s start with Apple. It will probably come as no surprise that it is the standout performer in the sector. Of course, the company’s product range goes way beyond its smartwatches. So perhaps its not a fair comparison. Nevertheless, a modest $1,000 investment in the tech giant back in 2014 would have blossomed into an impressive $8,880 by now. Not bad. The Apple Watch, introduced in 2015, helped establish smartwatches as mainstream accessories rather than mere tech novelties.
Garmin is another success story. The same $1,000 invested in Garmin stock would have grown to $3,641, demonstrating the company’s successful pivot from GPS devices to premium fitness wearables and smartwatches. Garmin’s journey hasn’t been without turbulence – the stock climbed steadily until the Covid-19 pandemic struck, triggering a significant decline as global markets reeled from the uncertainty. However, the company demonstrated remarkable resilience, not only recovering but pushing to new record highs since then.
Samsung’s journey tells a more modest tale. While the Korean tech leader has maintained a strong presence in the wearables market, a $1,000 investment would have yielded approximately $1,725 by 2024. This return is not bad. But once again, the company’s product range goes beyond wearable tech.
What about the rest?
Perhaps no company better exemplifies the volatile nature of the wearable tech market than Fitbit. Its stock market journey reads like a cautionary tale of the risks inherent in tech investments.
After going public in June 2015 at $20 per share, initial investor enthusiasm pushed the stock to remarkable heights. Within just two months, the price had more than doubled to $50, creating paper millionaires. However, this euphoria proved to be short-lived. Increasing competition began eating into Fitbit’s market share. The stock price began a steady decline, eventually leading to Google’s acquisition of the company in 2021 at $7.35 per share. A $1,000 investment at the IPO would have dwindled to $367 by the acquisition date, representing a sobering 63% loss.
Essential reading: Top fitness trackers and health gadgets
The wearable tech landscape extends beyond these public companies. Withings, known for its sophisticated health monitoring devices, has traveled a unique path. The French company was acquired by Nokia in 2016 and rebranded as Nokia Health, only to be bought back by its original co-founder in 2018, returning to its Withings identity. Throughout these corporate changes, the company has remained private, so there is no share price we can use for a comparison.
Similarly, Mobvoi, a Chinese company specializing in AI and wearable technology, only recently entered the public markets with its Hong Kong Stock Exchange listing in April 2024. While its products have gained traction in various markets, particularly with its TicWatch line of smartwatches, its recent public listing means long-term investment analysis isn’t yet possible.
So what’s the bigger picture here? Well, if you’d taken that same thousand dollars and just parked it in a boring old S&P 500 index fund back then, you’d be sitting on about $3,644 today – not too shabby for playing it safe. Garmin basically ran neck and neck with the market. But Apple? They left everyone in the dust.
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