FIT - Far Fewer Americans Are Using Fitness Trackers and Apps Than You Might Think
Wearable fitness tracking devices continue their strong run. According to figures from tech researcher IDC, the 34.2 million wrist-worn units shipped in the second quarter of 2019 was a 29% year-over-year surge, and the analysis expects global shipments to notch about a growth rate of about 8% a year through 2023. That would put annual fitness trackers and wearables sold at over 300 million.
The expected growth of the industry helps explain why Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google is trying to make the controversial Fitbit (NYSE: FIT) takeover -- even though the small wearables pioneer has been getting steamrolled by cheap competition from China and the premium Apple (NASDAQ: AAPL) Watch series. However, selling devices is only part of the story. Fitness trackers are viewed as a gateway to the global multitrillion-dollar-a-year healthcare industry, and tech companies still have a long way to go to convince consumers their wearables are as necessary as their smartphones.
A recent survey from analytics firm Gallup shows that 19% of Americans are currently using a fitness tracker. With a population of over 330 million, that's a pretty big customer base -- implying that some 60 million people in this country alone are users of Apple, Fitbit, and other tech companies' smartwatches and fitness wristbands. Nevertheless, given how strong sales have been in this category in recent years, that figure isn't totally surprising.