Menu
Fitbit IPO pumps up the heart rate of investors

Fitbit IPO pumps up the heart rate of investors

Fitbit is valued at $6 billion dollars with its stock trading for around $30 per share

Executives of FitBit ring the opening bell and celebrate the start of trading of FitBit stock at the New York Stock Exchange on June 18, 2015.

Executives of FitBit ring the opening bell and celebrate the start of trading of FitBit stock at the New York Stock Exchange on June 18, 2015.

Fitbit sprinted into Wall Street in its debut as a public company Thursday, as its shares opened 52 percent higher than the price that the wearables company had set for them.

Priced at US$20 on Wednesday, the stock instead opened at $30.40. Earlier in the week Fitbit had increased the price range of its IPO to $17 to $19 from the original range of $14 to $16.

With its shares trading for around $30, Fitbit is worth approximately $6 billion dollars.

Fitbit's wearables collect health and fitness data, including calories burned and steps walked. While smartwatches also offer these features, some analysts are bullish about fitness trackers, saying that they generally have simpler user interfaces, longer battery lives and lower prices.

In its IPO filing, Fitbit said it held an 85 percent share of the U.S. activity tracker market for the first quarter of 2015, citing figures from research firm the NPD Group.

Competitors include Garmin and Jawbone, which recently filed two lawsuits against Fitbit, as well as Asian consumer electronics companies such as HTC and Xiaomi.

According to an IDC study released Thursday, 72.1 million wearable devices will ship globally this year, compared to the 26.4 million units shipped in 2014, a 173.3 percent year-over-year increase. Wearable sales will continue to increase in the coming years. IDC expects global shipments to reach 155.7 million units in 2019.

Wearable makers may want to consider allowing third-party apps to run on their products, judging by IDC's predictions for the market. Smart wearables, which IDC defined as devices that can run third-party apps, will eclipse shipments of basic wearables in 2016 and hold this lead into 2019.

This year, 39 million basic wearables will ship compared to around 33 million smart wearables. However, in 2019, approximately 66 million basic wearables will ship compared to about 89 million smart wearables.

Device manufacturers are just starting to develop smart wearables, a product category that includes the Apple Watch and Microsoft's HoloLens, according to IDC.

Fred O'Connor writes about IT careers and health IT for The IDG News Service. Follow Fred on Twitter at @fredjoconnor. Fred's e-mail address is fred_o'connor@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesconsumer electronicsFitbit

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments