The Fitbit IPO was pretty successful, with share prices up 48pc on close of trading seeing the wearable giant valued at US$6bn.
The San Fransisco company was always going to draw in interested investors given its position at the top of the burgeoning wearable market. It’s actually leading that sector by so much that it’s probably only the Apple Watch figures, when they are officially announced, that will reel it in.
Another key is that, considering it’s short lifespan, Fitbit is actually profitable – although that hardly stops investors jumping on any other candidates for The Next Big Thing.
Speaking to Bloomberg, Fitbit’s CEO James Park spoke of the R&D commitment his company is undertaking, to stay ahead of the world’s genuine tech giants like Google, Apple and Samsung in the wearable realm.
A fine Fitbit IPO
“This year we’re tripling R&D spend — most of it is in software but we do continue to innovate in hardware,” he said. “It’s all about making fitness very fun and engaging. We’re investing a lot in software R&D to make that happen.”
It’s actually Xiaomi that poses the biggest threat to Fitbit’s crown at the moment, the Chinese company garnering a quarter of the entire market share in just one year, with just one product, the Mi Band.
However, that may say as much about the sector in general, which is still in its infancy, as it does about Fitbit’s competitors.
Again, the market will shape up differently once Apple’s wearable, the Apple Watch, is accounted for.
For example, yesterday it was reported that selling accessories to go with its hugely popular device has seen Apple rake in huge sums.
Image via Karlas Dambras on Flickr