Fitbit Inc (NYSE:FIT) is recently riding the high tide in the market despite the competition threat from Apple Inc. (NASDAQ:AAPL). According to the market analysts, the company’s improved product mix along with the better market conditions for wearable devices is the reason for this growth. Significant growth is also anticipated for the company in near future.
Positive device feedback helping Fitbit
There has been a continuous positive device feedback of the wearables from Fitbit. This, in turn, is suggesting a positive growth throughout the second half of the present financial year, as well as in the next financial year. According to Ben Bollin of Cleveland Research, Fitbit shall be witnessing 20M unit sale in FY2015. There shall be a potential upside of 22M unit range.
Strong brand recognition to drive Fitbit sales
The company is expected to perform well in the future because of an emerging trend, peers versus the rich product capability. At present, the company has a positive and strong brand recognition, which is driving its sales. Fitbit also has a potential for dealing with an increase in the competition. This explains how the company is gearing in the forward direction without fear from Apple’s wearable devices. The fitness devices from Fitbit are less expensive and affordable for the peers, which makes them a preferred choice among many.
However, the potential for an increase in the competition still remains a challenge because of a few factors. The entrants in this niche of the market do not fear to pursue all kinds of price bands. It will therefore be interesting to see how Fitbit will maintain its present charm in the wearable fitness devices market.
Recently, the company has also received a huge order from Target Corporation (NYSE:TGT), which has made it Fitbit’s largest corporate client so far. The revenue from corporate is also increasing, indicating a positive outlook for the investors once again.
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