Fitbit bets on marketing drive for latest devices to stay ahead

New York

FITBIT Inc is betting that global marketing campaigns to introduce its newest wearable health-tracking devices, including an inexpensive smartwatch, will help maintain its dominance in an ever-more competitive industry.

For now, the higher costs and slower-than-expected sales that may come from those efforts are raising concerns among investors who have watched the company's shares lose almost half their value this year.

Citing the rollout of its newest products, Fitbit on Monday forecast revenue and profit in the current quarter that fell short of analysts' estimates. The shares declined as much as 20 per cent in extended trading after the forecast was released.

Fitbit has been the leading seller of wearable fitness trackers, but competition from the likes of Apple Inc, Samsung Electronics Co and Xiaomi Corp may blunt the company's growth. Fitbit's market share fell to 22 per cent in the third quarter of 2015 from 33 per cent a year earlier, according to IDC. In addition to rivalry from the tech giants, companies such as Fossil Group Inc and Under Armour Inc have developed con…