Fitbit Banks on New Ace Device for Kids to Propel Growth | CORPORATE ETHOS

Fitbit Banks on New Ace Device for Kids to Propel Growth

By: | June 15, 2018
fitbit

June 15: American company Fitbit has brought to the market its new fitness tracker Fitbit Ace, targeting children of the age group of 8 years and above. With the new device, the company aims to raise the spirits of children to move more. Fitbit focusing on a new target audience will not be enough to reverse its losses, but this could prove to be a start to go places.

The company which developed and popularized wearable fitness trackers had been gradually fading from the industry scenario. In 2016, the company had lost many customers, with rival firm Apple launching more handy and expensive smart watches. Later, the company launched its own smart watch christened Versa.

According to IDC, in the year 2017, the company went down from holding 22 per cent of the share in the wearable category to only 13 per cent share. The company’s annual report, backing the same, revealed a loss of 25 per cent in revenue. The company’s revenue went down from $2.17 to $ 1.62 billion in 2017.

Fitbit which went public in 2015 gained 15 per cent share which is close to $7.28. This year, the stock of the company has increased by 28 per cent. This backs some of the statement given out by Citron Research. This includes the statement that Fitbit will be acquired by its partner Google.

The new Fitbit Ace device is to be sold at $100, which like the other entire Fitbit devices, tracks the user’s steps. It has customized alerts to encourage children to move for 60 minutes and suggested 9 hours sleep.

Ramon Llamas, Research Director at IDC’s devices and displays team has been quoted as saying that it has placed Fitbit on top of digital health and that it had brought in a massive transformation. He added that this transformation is what characterizes the company. The new product does not target the usual customers but also their kids. The device allows the children to share their activities with others thus the parents can easily access to their movements.

There are some negligible variations for the device, as it lacks calorie counters, body mass index, and other more nutrition-focused features. The company has stated that, with Ace, it aims at prioritizing activity over diet. Kids look for devices that are simple, durable, with battery life so that they need not charge it frequently and which comes with a small design for their wrists, a company executive has been quoted as saying. Stating that the younger generation is inactive, the official said, with the new device, the company aims to make them more active. It also intends to promote healthy behaviors from childhood.