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Fitness Band Ownership Up, But Purchase Intent Declines

Fitness band ownership among women, a key demographic for the product, is still rising, but purchase intent has slipped, according to Piper Jaffray’s sixth semiannual women’s survey. Piper Jaffray reported Wednesday that 21% of women surveyed own a fitness band, up from 18% in the fall survey. Meanwhile, 9% of women said they own a smartwatch, up from 8% in the fall. However, the intent to buy a fitness band in the next six months fell to 15% in the spring survey, from 19% in the fall. Intent to buy a smartwatch also dipped, falling to 10% in the spring survey from 13% last fall. “While ownership has improved, we did detect the first downtick in future spending intentions on the (fitness band) category,” Piper Jaffray analyst Erinn Murphy said in a report. “We could be approaching a saturation point with select brands.” Fitbit ( FIT ) remained the No. 1 preferred fitness band, with 77% mindshare, up from 68% six months ago. Garmin ( GRMN ) and Jawbone tied for second place, each with 5% share. Apple ( AAPL ) led the smartwatch category with 49% share, up from 42% six months ago. Fitbit jumped to the No. 2 spot after announcing its Fitbit Blaze smartwatch. It grabbed 20% mindshare, up 9% last fall. Samsung fell to third place with 14% share, down from 19% six months ago. Fitbit overtook Under Armour ( UA ) as the top fitness app provider in the spring survey. Fitbit garnered 29% mindshare in fitness apps, up from 18% last fall. Under Armour dropped to second place with 22% share vs. 27% last fall. Some 30% of women use a fitness app, down from 32% six months ago, the survey showed. For its latest survey, Piper Jaffray interviewed more than 1,000 U.S. women, with an average age of 49 and 73% with a household income of $35,000 to $80,000. RELATED: Apple Watch Shipments Slowed In Holiday Quarter . Fitbit Face-Plants After Giving Weak Q1 Guidance, User Numbers .  

Spectrum Wild Cards May Add Supply, Impact Verizon, T-Mobile, AT&T

Federal regulators appear set to go forward this spring with the auction of airwaves now owned by local TV broadcasters, but other spectrum-related developments loom as wild cards that could increase supply, thereby impacting wireless industry competition and M&As. Those other developments include the contract award for FirstNet, the federal government’s plan to create a nationwide wireless broadband network dedicated to public safety; the re-emergence of LightSquared, renamed Ligado Networks, from Chapter 11; and whether wireless firms succeed in lobbying to use commercial LTE technology in unlicensed spectrum now allocated to Wi-Fi. The Federal Communications Commission still plans to begin the “Broadcast Incentive Auction” on March 29. The auction, which could last five to six months, will free up an estimated 60 megahertz to 80 MHz of prime, low-frequency radio spectrum for wireless services. Results of the spectrum auction could affect the competitive future of IBD Leaderboard company AT&T ( T ), which has seen accelerating growth in recent quarters, and rival Verizon Communications ( VZ ) — a member of IBD’s Big Cap 20 — as well as highly rated Comcast ( CMCSA ). AT&T and Verizon are expected to buy TV airwaves in the auction, and cable leader Comcast also will likely bid, say analysts.  Alphabet ’s ( GOOGL ) Google has ruled itself out. AT&T and Verizon own more than 70% of low-frequency airwaves in the top 100 U.S. markets. Low-frequency airwaves travel over long distances and can pass through walls, improving in-building services. The FCC will impose a “quiet period” that bans negotiation over spectrum until the auction is over. Satellite TV broadcaster Dish Network ( DISH ) has acquired some 75 MHz of midband spectrum — which covers a little less territory than low-frequency spectrum — but it lacks a wireless network partner and is in limbo until the auction ends, analysts say. Dish has filed to bid in the auction, but observers are uncertain that it will. The auction’s outcome could well raise or lower the odds of some major deals, long rumored in the industry: — that Comcast will acquire a wireless services provider; — that a cable TV leader will strike an alliance with Verizon; — that Verizon will enter into a spectrum-leasing deal with Dish; — that Dish and T-Mobile will merge. But even beyond the auction, by early 2017, further developments involving the FirstNet contract, Ligado, unlicensed-LTE and satellite wireless firm Globalstar ( GSAT ) could impact Dish’s plans, as well as the spectrum strategies of AT&T, Verizon and T-Mobile. That’s because all these elements provide alternatives for network capacity, aside from the auction. Here’s a run-down of several scenarios: — FirstNet. Whoever wins this first-responder contract would need to invest in network infrastructure. Congress has set aside 20 MHz of spectrum — a wide swath of the airwaves — in the “D block” of the 700 MHz frequency band for the public safety network. The winning bidder is expected to enter into a lease agreement with the FirstNet authority for access to the 20 MHz of prime airwaves. While the FirstNet public safety network would be prioritized for emergency responders, the winning bidder would also be able to use the spectrum for commercial purposes and consumer services. The government will award the FirstNet contract after the TV airwave auction ends, if the government’s timetable proceeds as planned. Verizon has been viewed as the front-runner, but AT&T has made clear that it’s interested. T-Mobile ( TMUS ) could bid but faces long odds vs. AT&T and Verizon, analysts say. — LTE-U. Verizon and T-Mobile have been biggest proponents of developing a technical standard that would allow 4G LTE commercial technology to use unlicensed spectrum. Google, Microsoft ( MSFT ) and the Wi-Fi Alliance, which certifies Wi-Fi network gear, have lobbied the FCC to protect unlicensed airwaves, saying that interference could impair Wi-Fi services. Apple ( AAPL ), a Wi-Fi Alliance member, has not said anything publicly. Verizon and AT&T claim that no special LTE-U equipment certification is needed as long as devices meet certain basic FCC rules for unlicensed spectrum. Chipmaker Qualcomm ( QCOM ) has been backing LTE-U deployment. The FCC in February allowed Qualcomm to move ahead with LTE-U testing at two Verizon facilities to demonstrate that the technology would not interfere with Wi-Fi. Qualcomm and the Wi-Fi Alliance have been working on “coexistence” plans. The cable TV industry has a big stake in the outcome, analysts say, because Comcast, Charter Communications ( CHTR ) and others have been expanding public Wi-Fi networks. While Verizon has targeted 3.5 GHz spectrum in the near term, it could try to carry out LTE-U in higher 5 GHz airwaves that cable TV firms covet. If LTE-U gets a green light, the Apple iPhone and other devices could support the technology by 2018. — LightSquared , now Ligado. Former Verizon Chairman and CEO Ivan Seidenberg is chairman of Ligado, while former FCC Chairman Reed Hundt is a board member. Ligado, controlled by private equity firms, has a sizable 35 MHz of midband spectrum. After emerging from bankruptcy, Ligado reached agreements with tractor maker Deere ( DE ) and GPS device maker Garmin ( GRMN ), resolving issues over potential global positioning system interference. While Ligado might provide services to industries such as energy or transport, or pursue next-generation 5G services, it could sell the airwaves as well. The company hasn’t spelled out its new business model, analysts say, and it’s still awaiting some FCC approvals to use the spectrum for commercial purposes. — Globalstar.  The FCC has been studying Globalstar’s petition to use airwaves in the midfrequency 2.4 GHz block for wireless services. The Wi-Fi Alliance and other groups have opposed Globalstar’s plans, citing possible interference issues. Globalstar could lease capacity to a wireless firm or an Internet company if it wins at the FCC. Globalstar’s stock, though, has plunged about 50% in the past year to near 1.40 while its FCC approval has languished. Image provided by Shutterstock .

Apple Watch Shipments Slowed In Holiday Quarter

Shipments of Apple ‘s ( AAPL ) smartwatch, the Apple Watch, slowed in the fourth quarter, as the rest of the wearable device market jumped for the holiday shopping season. Market research firm IDC on Tuesday said Apple shipped 4.1 million Apple Watch units in Q4, up 5.1% from the 3.9 million units it shipped in Q3. That growth is down from the 8.3% increase in Apple Watch shipments in the third quarter compared with Q2, when the product debuted. Shipments of wearable devices excluding Apple’s rose 17.9% from Q2 to Q3 and 36.3% from Q3 to Q4, according to IDC. Fitness device maker Fitbit ( FIT ) remained the top maker of wearables worldwide in the fourth quarter. It shipped 8.1 million devices, giving it 29.5% market share, IDC said. That’s up from 22.2% market share in Q3 and 24.3% in Q2. Apple claimed second place with 15% market share, down from 18.6% in Q3 and 19.9% in Q2. China-based Xiaomi placed third with 9.7% market share, followed by Samsung (4.9%) and Garmin ( GRMN ) (3.5%). Total industry shipments of wearable devices reached 27.4 million units in Q4, IDC said. That’s up 30.4% from Q3 and 126.9% from Q4 2014. “Triple-digit growth highlights growing interest in the wearables market from both end-users and vendors,” IDC analyst Ramon Llamas said. “It shows that wearables are not just for the technophiles and early adopters; wearables can exist and are welcome in the mass market.” The wearables market is currently dominated by fitness bands and smartwatches, but it’s likely to diversify into other forms, such as smart clothing, footwear and eyewear, IDC analyst Jitesh Ubrani said in a report. Fitbit remains the “undisputed worldwide leader” in wearables, thanks to its well-segmented device portfolio, focus on fitness, a fast-growing corporate wellness program and extended market reach around the world, IDC said. Apple grew its Apple Watch unit volumes only slightly in Q4 from the previous quarter despite expanded distribution and holiday sales promotions, IDC noted. Expectations are higher for the company’s next-generation Apple Watch, which could leverage Apple’s platforms like HealthKit and bolster connectivity capabilities, IDC said. A second-generation Apple Watch could be revealed as soon as next month, when Apple is planning to hold its spring product briefing. RELATED: Fitbit Q4 Beats, But Q1 Targets Disappoint; Stock Plunges Late Smartwatch Shipments Skyrocket In Q4, Passing Swiss Watches .