The Fitbit Ionic smartwatch launched in October and it’s not exactly flying off the shelves. In addition to this, the reviews for the Fitbit Ionic have not exactly been favourable including the one following testing by Active JR. So a mixture of poor sales and poor reviews of the Fitbit Ionic have kept the Fitbit’s Stock price low despite a increase when the Ionic first launched.
Wearable technology will be top of the list for lots of people this Christmas, but as we approach Christmas and with Black Friday sales behind us, sales have not turned out great for Fitbit and this is shown in the ever decreasing share price.
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Excess stock of Fitbit Ionic
Analysts at Morgan Stanley say their checks have found inventories of the Ionic piling up at retailers, indicating soft demand for the Fitbit flagship. “Continued inventory build for the Ionic leaves us more cautious on Q1,” the analysts warned in a report on Thursday. “Store checks show a continued build-up in Ionic inventories since Black Friday even as sell-through reached holiday peaks.”
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When I did my first Fitbit Ionic hands-on impressions I was surprised at the low traffic visiting the pages and YouTube videos and I just put it down to the product being covered by lots of other websites, however my Garmin and other fitness reviews still fair pretty well in comparison. So when comparing the data from Morgan Stanley and other web traffic it Indicates that people don’t appear to be attracted to the Ionic Smartwatch.
Fitbit stock price continues to drop
Whilst I don’t personally think that Fitbit was banking the Ionic Smartwatch would return the companies share price to the glory days back in July 2015 when the share price was 46.50, I do suspect that Fitbit was hoping that it would raise its stock out of the flat 6 dollar mark.
Adding to the bad news, on Friday, Stifel Nicolaus analyst Jim Duffy downgraded his rating on Fitbit’s stock from Hold to Sell. This sparked a selling frenzy and 9% drop in the company’s share price to a low of $6.19. The price has rebounded slightly since, and is currently trading at $6.39, but this is still down 15% since the start of the year and a massive 69% since the company went public in 2015.
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The reason for Fitbit Ionics poor sales
The £299 Fitbit Ionic features 8 different sensors, onboard storage for music, smartphone notifications and Fitbit Pay. But as I mentioned in the Ionic review, its just a fitness watch and is lacking smart features like found on the Apple Watch. The Ionic also faces stiff competition from the Garmin Vivoactive 3 which offers a solid fitness watch and Garmin Pay.
So when you look at these 2 fitness smartwatches, the Fitbit Ionic has a lot to live up to with great fitness capabilities and the powerful Apple Watch with superb smartwatch features.
Other blogs and review sites are saying it’s too early to say if the sales of the Fitbit Ionic will pick up, but I think it has already passed the point in which it needed to make an impact on the fitness and wearable market, despite it finally bringing third-party apps and watch faces early this month. Whilst I don’t personally think the future of Fitbit rests on the Ionic being a success, I do think Fitbit need to think about how the Ionic 2 will be different enough to revive sales