Wearables fail to bolster battered tech

Shiny new wearables weren't enough to save two technology companies from steep sell-offs Tuesday.

Shares of fitness technology company Fitbit slipped around 12 percent to touch a record low, while shares of Apple dipped almost 2 percent, despite chatter both companies would release new smart watches.

FitBit unveiled details of its new $200 Apple Watch-like model, Blaze, a watch with expanded features such as call, text and calendar alerts, on-screen workouts with personal trainers, a connection to a smartphone GPS and heart-rate tracking, according to a company release.

Social media users were quick to call the product "stylish," "motivating" and "innovative" — but that didn't stop the company's stock from dropping.

A Fitbit spokewoman downplayed the day's tumble: "We cannot control how the public markets respond. We are focused on delivering strong results and are excited for what 2016 and beyond has in store."

Apple, meanwhile, will release two exclusive Apple Watch Sport designs, with yellow gold and silver aluminum color options with dark red straps, to celebrate the Chinese New Year, according to the Singapore version of Apple's site.

But celebration over the watch was short-lived.

Shares of Apple rose to a small peak of $104.70 at 11 a.m. Eastern time, only to fall nearly 2 percent in early afternoon trading, on the heels of a report saying the tech giant may significantly slash its iPhone 6S and 6S Plus output.

The trading whipsaw came as analysts have called for Apple to diversify its revenues away from the iPhone.

Because the majority of Apple's revenue comes from iPhones, the company may become a "victim of its own success" as it tries to ramp up sales in an increasingly saturated smartphone market, Colin Gillis, senior technology analyst at BGC Financial, told CNBC's "Squawk Alley" in December.

Though Tuesday's wearable news failed to gain ground for Apple and Fitbit, many industry insiders remain optimistic for the wearable market at large.

The connected health market, including personal fitness tracking, got the nod as one of the top app markets by The App Association's latest report, which predicts the market will reach $117 billion by 2020. And while the world is still waiting for a "Watch-first killer app," entrepreneur Andrew Chen said the wearable "could create a new generation of apps and start-ups."

"While it remains very early days, we believe wearables represent a major tangential growth opportunity in terms of the Internet of Things (IoT), which is expected to be the centerpiece of much technology innovation slated for 2016 with Apple, IBM, Google, Intel, Cisco and Microsoft leading the IoT charge in our opinion," wrote Daniel Ives, managing director and senior analyst at FBR Capital Markets, in a recent note.

— CNBC's Fred Imbert contributed to this report.