Garmin seems to be losing the battle of the wearables against Fitbit, with its sales slowing down, while Fitbit continues to grow.
Recently, its earnings from sales of fitness wearables, including GPS watches and trackers have decreased. In the final quarter of 2014, the company saw a sales growth of 70 per cent year on year, but in 2015, the growth is down to a measely 31 per cent. In this year's second quarter, that increase is just 5 per cent.
At the same time, Fitbit is showing no signs of slowing down. It has shown growth of 120 per cent in Q2 this year. Riding high with its Charge, Charge HR and Surge devices, the company is expected to show growth up to 180 per cent year on year.
In Garmin's earnings call with investors, CEO Cliff Pemble laid the blame on the lack of new products in that period and unfavourable currency markets.
According to a report by Wareable, one of the investors asked how long Garmin would continue invest in the tracker market before he would think about "curtailing it" considering there's a "well-established leader". That “well-established leader” is almost certainly Fitbit, currently worth $4.1 billion (£2.63).
"You asked how long we would continue to invest in R&D and our mode of increasing investment right now," he said. "The market is growing rapidly and so consequently the opportunity is there and we feel it's the right time to invest in these things."
It seems as the war of the fitness bands is far from over.