Fitbit shares plunge after unveiling new smartwatch

Shares in Fitbit (NYSE:FIT) fell more than 18 percent on Tuesday, as investors expressed concern over the company’s movement into the competitive ‘smartwatch’ market.

Fitbit premiered its first new product in over a year in Las Vegas yesterday, their ‘Blaze’ smartwatch designed to text, place calls and control music playback – alongside Fitbit’s typical health features such as step counting and sleep tracking. The device will cost $200, for which Fitbit have already started taking pre-orders, and has a five day battery life.

However whilst Fitbit have been very successful in their niche area of wearable fitness technology, seeing a doubling in their share price since their IPO in June, investors expressed concern yesterday at their ability to compete with the likes of Apple and Samsung in the smartwatch market. Their shares fell over 18 percent yesterday after the product’s unveiling.

Fitbit closed up down 18.45 percent at 24.27 pence per share. The company has 52 week range of between 24.03 and 51.90.

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