Fitbit Inc (NYSE:FIT) Plans To Use Ionic Smartwatch To Boost Business

153
fitbit-inc

Fitbit Inc (NYSE:FIT) is betting on its recently launched Ionic Smartwatch to help boost the performance of its business.

The fitness tracking company launched the Ionic smartwatch in August as a fully-fledged smartwatch with its own operating system. Previous watches from Fitbit were mainly fitness watches which means the company’s new approach with the Ionic smartwatch is a refreshing approach for the firm as well as its market. This is because it finally offers a device that can be categorized as a smartwatch with fitness capabilities just like its competitors.

The launch of the Ionic smartwatch contributed significantly to the improved performance of the company’s stock. However, the stock is yet to reach levels Fitbit was hoping for but Fitbit has a few tricks up its sleeve. The company is hoping that its community of users, improved coaching features as well as the availability of an app gallery will help generate additional growth.

One of the main takeaways about the Fitbit Ionic that the company revealed to investors during the launch of the wearable device in August was a comprehensive software development kit (SDK). This is a vital move on the company’s part because it will allow developers to create smartwatch apps.

“Having the app gallery and SDK will aid development of more health-focused apps in partnership with insurers or medical device manufacturers,” pointed out Motley Fool.

The company also announced that it is working together with UnitedHealth Group Inc (NYSE:UNH) to come up with motion programs as well as a partnership with Dexcom. These partnerships are expected to generate more value for the company as well as its investors thus leading to an improved performance of the stock.

Fitbit reported in May this year that it had roughly 50 million registered users and 63 million devices sold. The firm claims that the availability of coaching features on the Fitbit Ionic might attract between 40 million and 80 million new users. The new wearable device is also expected to compete more effectively with other smartwatches in the market from rival companies.

Fitbit stock closed the latest trading session on Thursday at $6.46 after tanking by 0.92 percent from the previous close.

An ad to help with our costs