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NEW YORK (TheStreet) -- Apple (AAPL) - Get Apple Inc. Report unveiled its Apple Watch Series 2 with a new water-resistant shell and a GPS chip at an event in San Francisco today. 

The updates make the watch more comparable to the activity trackers from Fitbit (FIT), but are not enough to overtake Fitbit, True Ventures venture partner Om Malik said on BloombergTV's "Bloomberg Markets" Wednesday afternoon. 

In order to dominate the activity tracker sector, Apple needs to stop trying to do so much with its smartwatch, he added.

"I would say that Fitbit has proved time and time again that focused, dedicated products are more in demand in the market right now. Apple Watch suffers from a little bit of confusion, or 'personality disorder' as I would like to call it. Until they figure that out, Fitbit has a clear lead and will maintain a clear lead," Malik asserted. 

In addition, more focused designs like Fitbit's give trackers a longer shelf life.

"I do believe on these wearables, small and focused products work much better for a longer period of time," he said. 

Fitbit's stock price is retreating mid-afternoon Wednesday following the new Apple Watch announcement. Apple stock is also down. 

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True Ventures is a shareholder of Fitbit. 

The retail price for the new watch is $369 and pre-orders begin September 9. The watch will be offered in a special Nike (NKE)-branded version. 

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Apple as a Buy with a ratings score of B+. This is driven by some important positives, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

You can view the full analysis from the report here: AAPL

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