Fitbit Inc (NYSE:FIT) and GoPro Inc (NASDAQ:GPRO) are in completely different verticals. Fitbit manufactures connected health as well as fitness gadgets. The devices include activity monitors, wireless wearable gadgets that gather personal information such as the number of steps climbed, steps walked as well as other lifestyle measurements. GoPro produces the HERO range of cameras. However, they share one thing. Both have generated considerable craze as well as fashion in technology aficionados and early purchasers. The latter two groups have been mesmerized by the ways both company’s products have transformed daily life.
The same fashion and craze are proliferating among investors as the two organizations’ stocks were introduced on Wall Street. The problem is that the popularity of the products of both the companies have yet to go beyond the tipping point. The latter means being adopted by the masses.
Coming to the tipping point requires the environment that will make the items appeal to the masses. For example, increased health awareness could assist Fitbit’s offerings popular among the masses earlier than otherwise. Also the proliferation of drones could help in boosting sales for GoPro’s cameras. Time is critical in technological industries as emergences of similar products can slow down and interrupt the move to the tipping point.
Currently, there is considerable direct as well as indirect competition for the offerings of both organizations. Fitbit’s gadgets are in competition with offerings from companies including Xiaomi, Apple Inc. (NASDAQ:AAPL), Samsung and more. Smartphone cameras are giving stiff competition to GoPro’s cameras.
Fitbit is rapidly losing its advantage as a pioneer in the fitness variables vertical. It can draw lessons from GoPro if it doesn’t be in the latter’s position. Fitbit can capture the high end wearable market if it innovates well, offers genuine value and markets itself accordingly. Both organizations were first movers. However, their markets had low barriers to entry. As a result, the segment for low end gadgets was crowded by inexpensive devices that took more risk concerning features and designs.
GoPro learnt that the products that are not affordably priced will fail in the market where cheaper options nullify the benefit of brand awareness.