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Home>Fitbit stock falls after reviews for Ionic smartwatch

Fitbit stock falls after reviews for Ionic smartwatch

Fitbit stock falls after reviews for Ionic smartwatch

09/20/2017

By Max A. Cherney

While not everyone dismissed the new watch, many reviewers said it was not an Apple Watch killer

Shares of Fitbit Inc. closed down nearly 5% Tuesday after a swath of reviews of its new Ionic smartwatch, many of which said it likely could not compete with Apple Inc.'s new watch.

Announced in August (http://www.marketwatch.com/story/fitbit-introduces-300-smartwatch-in-challenge-to-apple-2017-08-28), the long-awaited smartwatch was aimed to be a challenger to Apple's (AAPL) line of watches, including a new cellular-connected smartwatch detailed this month (http://www.marketwatch.com/story/apple-watch-finally-lives-up-to-dick-tracys-standards-so-maybe-it-will-live-up-to-expectations-2017-09-12). Priced at $299, the Ionic is $30 cheaper than Apple's new Series 3 model without cellular, and $100 cheaper than the connected version. Long known for its fitness-focused devices, Fitbit (FIT) has high hopes for the new Ionic, betting that certain features would help propel it to a must-have gadget.

See also: Apple and Fitbit expected to boost sales of smartwatches and other wearable tech (http://www.marketwatch.com/story/apple-and-fitbit-expected-to-boost-sales-of-smartwatches-and-other-wearable-tech-2017-09-14)

Over the past year, Fitbit has struggled financially and investors have pushed the stock down 14.6%. The S&P 500 index has gained 10.5% in the same period. Analysts have also seen the new smartwatch as the catalyst the San Francisco-based company needs to turn itself around.

One of the key features analysts expect to help propel smartwatches is uncoupling the device from a smartphone (http://www.marketwatch.com/story/how-apple-could-make-smartwatches-more-popular-and-potentially-help-fitbit-2017-08-22). Apple's new Series 3 does that via its cellular option, and Fitbit has given the Ionic some unconnected functionality like its stand-alone payment option and Pandora(P) -based music playback.

Don't Miss: Apple Watch will cost an extra $10 a month for cellular connection (http://www.marketwatch.com/story/new-apple-watch-will-cost-an-extra-10-a-month-for-cellular-connection-2017-09-12)

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