Week in a Nutshell #23

Welcome to the twenty-third episode of the 'Week in a Nutshell’ series,

E3, annual video game conference took place early last week and we had  plenty of new video game announcements. Apart from E3, Fitbit IPO was the highlight of the tech news.

Headlines:

  1. Fitbit Shares Surge 48 Percent in Market Debut

Fitbit Shares Surge 48 Percent in Market Debut

Fitbit's long-awaited IPO finally took place on Thursday. Fitbit set its IPO stock price as $20 but it opened up for trading with $30.40 on Thursday morning. When the trading was closed, Fitbit stock was priced at 29.68$ with an increase by 48% compared to its initial listing, $20. 

Fitbit was valued at $4.1 billion based on its IPO application. However, Fitbit's market value went up to nearly $6 billion after its strong debut on its first day in the stock exchange.

IDC research based on the first quarter of 2015 shows us that Fitbit continues to be the leader with %34.2 market share in the fitness tracker wearable device market. Continuous growth of sales volume in this market and Fitbit's leading position encourage investors to invest in Fitbit stock explaining Fitbit's fantastic debut performance in the stock exchange. 

Many people consider Jawbone with its UP fitness bands as Fitbit's biggest competitor. I'd like to put an emphasis on Xiaomi based on the IDC's analysis below. It is clear that Xiaomi has earned a large market share within the past one year thanks to its Mi fitness tracker band which has a price tag for $15 and it basically has the same functionality and technical capabilities as the $99 priced Fitbit Flex has.

I believe Xiaomi hits the price/performance sweet spot with the Mi band and it will become Fitbit's main challenger in the US with its recent expansion. I'm wonder how Fitbit will react to that segment.


We came to the end of the twenty-third episode of ‘Week in a Nutshell’ series. If you enjoyed this post, I'd be happy if you could comment, share, like and/or recommend it. 

Thanks,
Birkan