Fitbit shares lose value in wearables market amid Apple competition

Fitbit shares dropped 12 percent Feb. 27 as the company struggles to compete with Apple's smartwatch, CNBC reports.

Fitbit expects sales during the first quarter of fiscal 2019 to increase 8 percent over sales in the same quarter last year, putting total sales between $250 million and $268 million, according to the report. This number falls short of the $272.3 million revenue analysts expected the company to hit.

Additionally, analysts predicted Fitbit's stock would lose 15 cents per share, while the company reported a loss of 22 cents to 24 cents per share in the first quarter of 2019.  

Fitbit competitor Apple dominated the smartwatch market during the fourth quarter of 2018. The tech giant took up 51 percent of the market share, representing half of the $18 million total global smartwatch shipments, according to Seeking Alpha.

Fitbit and Apple could soon face more competition in the wearables market as companies like Google and Microsoft are rumored to be developing healthcare wearables. AT&T also recently announced the launch of its new smartwatch designed with telehealth and remote patient monitoring capabilities, and Samsung is developing its first wearable device that can measure blood pressure.

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