Are fitness trackers a waste of money?

Want to lose weight? Improve your cardio? Lower your blood pressure? Then don’t buy a fitness tracker. In fact, some experts claim they can “do more harm than good”. Wondering why you might have wasted money on yours? Read on…

 

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Now let’s just get one thing straight before we continue. I actually use a variety of wearable devices. I have an Apple watch which measures my daily activity, I use the Nike+ app when I go running and I use a Garmin & Strava for cycling. And it seems that I’m not alone with an estimated 20% of Americans wearing some form of tracker and around 3 million being sold in the UK each year. People use them in different ways and for a variety of reasons. Personally I want to monitor my performance and am fascinated with the data that they produce (I know, I’m a nerd). Consequently I love them all, so before you launch into a tirade along the lines of ‘this guy hates Fitbits’ in the comments section please remember not to shoot the messenger…

Now then, why have the boffins got such a downer on trackers? Well firstly, they pour scorn on the whole notion of the 10,000 steps. It seems that this has no basis in any robust scientific research. According to Dr Greg Hager who is a professor of computer science at Johns Hopkins University:

  “Turns out in 1960 in Japan they figured out that the average Japanese man, when he walked 10,000 steps a day, burned something like 3,000 calories and that is what they thought the average person should consume. So they picked 10,000 steps as a number”

In fairness, that hardly seems very scientific. Unless you are an average Japanese man who is still living in 1960. A relatively small sample size, I’m guessing.

Just last week Prof. Hager pointed out that we we cannot have a ‘one size fits all’ solution and every individual needs a bespoke fitness plan which caters specifically for their needs. He goes on to say:

“I think apps could definitely be doing more harm than good. I am sure that these apps are causing problems. Without any scientific evidence base, how do you know that any of these apps are good for you? They may even be harmful”

Harmful? Seriously? Isn’t that pushing it a tad too far? Well in support of his claim, Hager states that someone with an underlying medical condition may not necessarily be capable of achieving the 10,000 steps and it could be detrimental to their health to try.

So, is Hager out there on his own in his thinking? Well, it seems not. A 2016 study of 800 people with activity trackers was conducted in Singapore which discovered that there were no health benefits to the research subjects when compared to a control group who didn’t use a tracker. What’s more, they even added a cash incentive to increase the number of steps they took. It made absolutely no difference.

In the UK, Hager also has support from Simon Leigh, a senior health economist at Nexus Clinical Analytics who has published several studies on fitness trackers in the British Medical Journal. He said:

“Dr Hager is spot on. A GP, endocrinologist or other fitness specialist would unlikely  recommend 10,000 steps for most people. Especially given that the majority of those who download these apps are likely to be unfit and in need of improvement in the first place” 

I understand what these guys are saying but surely in a population with rising rates of obesity, we need to encourage people to do some form of exercise and activity trackers can be a strong motivator in the right hands (or should that be on the right arm?). After all, surely it is better to do 10,000 steps a day than none at all? It beats lying on the sofa eating double cheese deep pan pizza and watching The Kardashians.

Surely it also depends on what you are doing on your journey of 10,000 steps. If you are having a brisk walk around the park with your Cockerpoo then that must have some health benefits. For you and the dog. However, if it’s a pub crawl around town on a Friday night followed by a stagger down to the kebab shop then I don’t think that counts. It’s really all a matter of balance.

Depending upon the type of tracker you use valuable personal information can be measured and monitored over time including heart rate, calorie consumption and sleep patterns. The aggregation of all this big / smart data can be of use to a medical practitioner, an insurance company or even the advertising industry. The implications of this are not only fascinating but have huge business potential.

 

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A doctor could offer a prognosis on potential medical conditions saving both money and lives. Your insurance company could use your data to offer you improved premiums on health insurance in the same way that they use trackers for safe drivers on car insurance. And the ad industry can use programmatic to specifically target you with dynamic creative to offer you goods / services that are highly relevant to the individual (e.g. new running shoes in your size and favorite colors).

 

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Dr John Jakicic from the University of Pittsburgh, seems to be of the same opinion as myself. In his studies, he found that fitness trackers could form part of a series of behaviours to encourage people to lose weight or improve fitness:

“we need to be careful about relying solely on these devices. However, there is a place for these, and so we need to be careful not to throw the baby out with the bathwater in my opinion”

So are these trackers going end up gathering dust in the garage along with other defunct fitness gadgets such as the Ab-Cruncher and Thigh-Master? Well don’t be too hasty in ditching your Fitbit just yet. Accept it for what it is and use it accordingly. Figure out an optimum level of activity for your age, size and fitness level (if you are unsure, consult an expert or just Google it). Then simply incorporate it into your weekly workout schedule.

 

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What do you think? Are these trackers really useless or do they have some merit? Do you own one and now feel cheated or does the technology really work for you? As ever, I am interested in your viewpoint.

 

 

Written By: Steve Blakeman
Source: LinkedIn

Fitbit Gets Boost As Wall Street Heaps On Praise

AP Photo/Richard Drew
AP Photo/Richard Drew

Wall Street released a deluge of positive reports about Fitbit on Monday, as the quiet period following its June IPO was lifted, giving the stock a boost.

Fitbit, which makes wearable fitness trackers, is dominating a fast-growing space. The company lays claim to a whopping 85% of the U.S. market, up from 59% just two years ago.

Fitbit is a “brand that has become synonymous with the category,” writes PiperJaffray analyst Erinn Murphy. In other words, it has become the Kleenex of fitness trackers.

Analysts are excited about Fitbit’s ability to continue capitalizing on the wearables space, which is hot and getting hotter. Consumer spending is growing faster on these devices than on any other consumer electronics gadgets out there, according to IDC.

“While some investors argue wearables are a niche or fad, our work suggests penetration is approaching levels enjoyed by notebooks in the US and will increase over the next year,” writes Morgan Stanley analyst Katy Huberty.

Here’s what Wall Street is so rosy on:

Fitbit looks poised for long-term growth

Fitbit has room to run, agree analysts, who love that the consumer brand is so well-known. For instance, the company can do more with corporate wellness programs subsidized by employers. Right now, Fitbit gleans just 7% of sales from such programs.

It can also look to international markets to drive growth. It’s already the global leader in the wearables space, with 34% market share, but international markets remain largely untapped. “The bottom line is that very few consumers own fitness trackers to date,” writes Deutsche Bank analyst Ross Sandler. He figures that even 5% penetration in developed markets and 2% penetration in emerging markets would trigger demand for nearly 31 million fitness bands. (Last year, Fitbit sold 10 million devices.)

Plus, product innovation should help fuel growth.

“We believe devices are just one part of the Fitbit story – the part that is immediately visible and has been the growth driver to date,” writes SunTrust analyst Robert Peck, who notes that Fitbit has the potential to expand into fitness-oriented services that complement its physical trackers. Fitbit could become a “one-stop hardware/service solution to peoples’ health and fitness concerns,” he posits.

Deutsche Bank’s Sandler goes even farther, envisioning a Fitbit that goes beyond health and fitness: “There is no reason why your Fitbit device (in the future) couldn’t display email and text messages, turn on the lights to your home, unlock your car, and many other basic life-improving functions – in addition to tracking your health stats.”

Apple Watch is not a death sentence

The Apple Watch has gotten a lot of buzz and is frequently cited as a key threat to Fitbit. But while attention is great, buying is better. People are three times more likely to hear about Fitbit and actually go out and purchase one than they are an Apple Watch, according to a SunTrust survey.

This could change, some analysts point out, when the next generation of Apple Watch comes out and it becomes easier to buy.

Still, there are key distinctions between the two devices and who wants to buy them. For instance, Fitbit is cheaper and therefore accessible to more people. It also has a much longer battery life (it’s hard to monitor your sleeping if you have to charge your device every night) and you don’t have to own an iPhone to use it, like you do with an Apple Watch.

Morgan Stanley’s Huberty sums it up like this: “Apple is too big and Fitbit share too high to not assume some share loss but overlap will be limited by different price points and features.”

It’s actually making money

The San Francisco-based company swung to a profit last year, earning $132 million on revenue of more than $745 million. It has been helped by the rapid popularity of its fitness trackers: Last year it sold 10.9 million devices, more than double the 4.5 million devices it sold in 2013.

These financials are “robust,” says SunTrust’s Peck, who points to Fitbit’s strong revenue growth rate (up 150% in 2014) and gross margins (45-50%). He sees $140 million in profit this year on revenues of $1.4 billion.

Fitbit has drawn comparison to consumer growth stocks like Under Armour UA +3.61% and GoPro from several analysts. It has “superior growth metrics to-date,” writes PiperJaffray, and combines “a powerful consumer brand with technology.” Its stock is also trading at similar levels to other consumer growth stocks in the post-IPO period.

When Fitbit made its public debut last month, the stock gained nearly 50% on its first day of trading to close at $29.68 per share. Since then, it has gained 110% from its IPO price to $42 per share. Share were up another 5% to $44.24 on Monday.

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Written by Lauren Gensler of Forbes

(Source: Forbes)