Can Fitbit compete with Apple?

In January, Fitbit released its first smartwatch product: the Blaze, a smartwatch specifically focused on fitness purposes. In today’s competitive market, does the company have what it takes to contend with its major opponents like Apple?

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The Wall Street Journal took a closer look.

Within one month of the Blaze’s release, Fitbit stocks lost half their market value. But for the quarter after its launch, the company posted a 44 percent gain in sales. Fitbit also sold more than 1 million Blazes in the last month of the same quarter.

But that might not be enough. For the first quarter, Fitbit’s operating margin was at 4 percent — a record low — and the company only expects  continued pressure.

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