Yeah I don't know if it's right to say that the market is "rooted" in that segment it seems like it's easier to make money there for a variety of reasons. Some

Yeah I don't know if it's right to say that the market is "rooted" in that segment it seems like it's easier to make money there for a variety of reasons. Something like 80% of the market is special purpose wearables like Fitbits vs. 20% smart watches like Pebble and Apple. One of the only companies in the segment that had good results in 2016 was Garmin which focuses on activity watches. The fitness and activity tracker segment has several advantages: -there's an obvious benefit to being wearable, so they're not competing directly with smartphones. -they're selling into a rapidly growing market for "lifestyle" accessories. -precisely that obsolescence that you mentioned means they can keep selling to existing customers. -many people who use them get addicted to the gamification aspect of fitness tracking and will immediately replace broken items. -sports equipment is expected to wear out in a way that premium watches are not, so watches that break after a year or two do not leave as much of a negative perception with customers.