Samsung Surpasses Fitbit in Wearable Device Market

Samsung Electronics (SSNLF) has long been a leader in smartphones and is increasingly gaining share in the wearable market, having surpassing Fitbit Inc. (FIT) for the first time ever during the first quarter.According to a new research from Strategy Analytics, which was covered by the media, during the first three months of the year, the South Korean electronics company’s Gear S3 smartwatch accounted for 12.8% of the global market, beating Fitbit, which had 12.2% market share in wearable device. Apple Inc. (AAPL) was in first place during the first quarter with the Apple Watch commanding 53% of the market in the period from January to March. (See also: Apple Watch's Heart Sensor May Detect Stroke.)

Tracking the Tracker Makers

The research firm attributed the growth of Samsung’s wearables share to strong sales of the Gear S3 smartwatch, which launched in November. The device has resonated with consumers partly because it boasts a battery with long life and extra functionality, including Samsung Pay, its digital payment service. At the same time, Fitbit has been seeing a decline in sales as it struggles to come out with products that will entice new users and get existing ones to upgrade. It doesn’t help that reports have surfaced that the calorie counting and heart rate monitoring features of a lot of wearables don’t work as promised. (See more: Stanford Study Says Fitness Trackers Can't Count Calories.)Earlier this month, market research firm International Data Corp. came out with its own results for the first quarter that found Fitbit fell to third place among manufacturers of so-called smart wearables for the first time. It shipped fewer wearables than either Chinese gadget maker Xiaomi or Apple. After benefiting from a sustained period of high returns following its 2009 debut on the public market, Fitbit has seen decelerated growth drag down its shares over the past year. The long-time leader in the wrist-worn fitness tracker market has suffered from manufacturing mishaps, disappointing upgrades and a slump in demand from its Chinese consumers.It doesn’t help that Apple is adding new features and functionality, announcing earlier this month at its developers conference that it’s rolling out a new operating system for the Apple Watch. The WatchOS 4.0 features new watch faces, including one for Siri, Apple's voice-activated digital assistant. It also has improved fitness and health tracking, including custom workout algorithms that enable users to track results for workouts that they define

Reference: http://www.investopedia.com/news/samsung-surpasses-fitbit-wearable-device-market/