Apple Watch and Fitbit watch are two popular products offered by corresponding brands. The modern market of technologies is characterized by a high level of demand for this category of devices. For this reason, companies try to offer their own products and popularize them to generate revenue.
Apple’s sales and marketing strategy emphasizes the unique quality of products offered to its clients. Apple Watch is positioned as a high-class, premium, and even luxurious device that meets customers’ demands to differentiation, diversity, and the ability to emphasize their status. The marketing campaign is aimed at the popularization of the idea that the brand’s products are unrivaled, and its comparatively high price is explained by the combination of factors mentioned above (Lovejoy, 2019). Moreover, the product benefits from the recognizable logo and the positive image of the brand.
Fitbit employs another marketing strategy because of its current position in the market. The firm launches a potent advertising campaign to create a recognizable image of the brand and familiarize people with its products, which is fundamental for sales. Additionally, it devotes much attention to health concerns and states that the Fitbit watch is a useful tool to remain in good shape and care about the current health status. These differences in advertising campaigns are preconditioned by different positions of Apple and Fitbit in the selected segment and existing opportunities.
A comparison of companies’ marketplace data shows the dominance of Apple in the wearables segment. Statistics show that the brand possesses 37.9% of market share, with 2.9 million watches sold in the US and Canada during the 2nd quarter (Lovejoy, 2019). It also indicates a stable growth of about 32% per year, which is a positive result (O’Hara, 2020). However, Fitbit continues to improve its positions and become another significant actor in the market. It holds the second position in the segment, with 24.1% of the market share (Press release details, n.d.). Moreover, it has about 1.9 million shipments, which evidences the growing demand for the company’s products.
Comparing the overall revenues from selling the products, Apple also holds leading positions. The brand reports that in the first quarter of 2020, it managed to earn about $10 billion (O’Hara, 2020). The income of Fitbit is significantly lower, and it constitutes about $1.48 billion (Press release details, n.d.). Additionally, the corporation experiences a loss of about 38% per share or about $312 million in revenue (Feiner, 2019). The given numbers demonstrate the existence of a critical difference between the two selected brands. Fitbit remains a second brand that tries to compete with the leader, Apple, that has stable positions and benefit from the growing demand on its products.
Altogether, the comparison of essential aspects of both companies’ functioning shows that Apple and Fitbit have stable positions in the segment of wearables. However, there are some critical differences between these two companies. Apple uses the marketing strategy that emphasizes the premium class and unique design of its products, along with their recognized image. Fitbit revolves around health issues and the accuracy of measurements that are peculiar to its products. In such a way, both brands remain significant players in the market, but Apple’s position seems more attractive because of its stable and high revenue and the tendency towards further growth in the number of shipped items. Additionally, the brand dominates in such traditionally significant markets as the USA and Canada.
Apple SWOT analysis
Strengths
Recognizable image, leading position, high revenues
Weaknesses
Comparatively narrow target audience, high price for products, incompatibility with other software
Opportunities
Utilization of artificial intelligence, continuous growth and holding leading positions
Threats
New entries, increasing competition
Fitbit SWOT analysis
Strengths
Fast growth, reliable suppliers, topical trends
Weaknesses
Unrecognizable image, lack of promotion, gaps in product range
Opportunities
Provision of devices to engage in healthy lifestyle, improvement of marketing positions.
Threats
High level of rivalry, pressure from Apple, the leader in the sphere.
References
Feiner, L. (2019) ‘Fitbit craters after cutting guidance’, CNBC. Web.
Lovejoy, B. (2019) Apple Watch shipments grew 22% in 2018, thanks to popularity of the Series 4. Web.
O’Hara, A. (2020) ‘Apple’s wearables segment hits new record in Q1, size of Fortune 150 company’, Appleinsider. Web.
Press release details (n.d.). Web.