Morgan Stanley Thinks Fitbit Needs Better Software

If Fitbit (NYSE: FIT) truly wants to remain relevant as the wearables market slowly transitions away from single-purpose fitness trackers toward multipurpose smartwatches, it needs to get better at software. At least that's the opinion that Morgan Stanley analysts Yuuji Anderson and Katy Huberty expressed in a research note today (via Tech Trader Daily). The distinction -- one that Steve Jobs perfectly described over a decade ago and the tech industry has embraced ever since -- is that hardware is immutable after a product is created, while software can be updated after the fact.

Fitbit hasn't really made dramatic improvements in the hardware and sensors that it includes in its devices, which is a potential challenge. The company's products may struggle without "persistent software improvements," according to the analysts. Fitbit can improve hardware functionality through the use of software.

Image source: Fitbit.

Source: Fool.com