With Smartwatches Coming, What’s In Store For The Activity Tracker Market

9-8-2013 4-24-52 PM

One question on the minds of many in the digital health sector now that smartwatches are officially here is how the activity tracker market will respond to the threat. InformationWeek tackles that very question this weekend in an interview with ABI research analysis Josh Flood.

Activity tracker companies are insulated from direct competition with the smartwatch market. The Samsung Galaxy Gear that launched last week is priced at $299, nearly double the average retail price of an activity tracker. The watch also only works if it’s tethered to a Galaxy Note smartphone, which will significantly limit consumer interest. While this is undoubtedly reassuring to activity tracker companies, these are market conditions that just won’t last for long.

Apple, Sony, Microsoft, and others have already announced plans to move into the smartwatch space. The extent to which they include fitness in their devices remains to be seen, but Apple has been rumored to be integrating fitness components throughout its iWatch designs. As major players like Samsung, Apple, and Sony launch and enhance their smartwatch designs, the threat to incumbent activity tracker companies like Fitbit, Shine, BodyMedia, and Basis could be significant.

Flood explains that companies like Sony, Samsung and Apple should be "very concerning" to the health tracking market. "It’s possible it will cannibalize the market for healthcare trackers," he says.

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