Fitbit posts strong third-quarter revenue, says Apple Watch had no 'material impact'
The Apple Watch had no "material impact" on Fitbit's sales in the third quarter, which saw revenue climb 168 percent year-over-year to $409.3 million, the company's CEO said in a results call.
Apple and Fitbit serve "two very different segments in the market" when it comes to the prices and purposes of devices, James Park told investors on Monday. Unlike the Watch, Fitbit devices are exclusively fitness-oriented and cost between $60 and $250. Even the cheapest Watch is $349, and prices can go as high as $17,000.
"We strongly continue to feel that the Apple Watch and Fitbit are targeting two very different consumers," Park said.
After the launch of the Apple Watch in April, some speculation arose that Fitbit sales would drop given the popularity of Apple products and the Watch's inclusion of motion and heart rate sensors. Another factor working in Fitbit's favor, however, is that the Watch is iPhone-only, whereas Fitbit products will also work with Android and Windows phones.
Fitbit shipped 4.8 million devices in the third quarter. Apple has so far kept the details of Watch sales a secret, although the company is believed to have made at least $1.688 billion from them since April.
Share prices for Fitbit have nevertheless fallen since Monday, but only in response to an announcement that it's offering another 7 million shares, while some shareholders will be selling off another 14 million.
Apple and Fitbit serve "two very different segments in the market" when it comes to the prices and purposes of devices, James Park told investors on Monday. Unlike the Watch, Fitbit devices are exclusively fitness-oriented and cost between $60 and $250. Even the cheapest Watch is $349, and prices can go as high as $17,000.
"We strongly continue to feel that the Apple Watch and Fitbit are targeting two very different consumers," Park said.
After the launch of the Apple Watch in April, some speculation arose that Fitbit sales would drop given the popularity of Apple products and the Watch's inclusion of motion and heart rate sensors. Another factor working in Fitbit's favor, however, is that the Watch is iPhone-only, whereas Fitbit products will also work with Android and Windows phones.
Fitbit shipped 4.8 million devices in the third quarter. Apple has so far kept the details of Watch sales a secret, although the company is believed to have made at least $1.688 billion from them since April.
Share prices for Fitbit have nevertheless fallen since Monday, but only in response to an announcement that it's offering another 7 million shares, while some shareholders will be selling off another 14 million.
Comments
Standalone GPS units for your car weren't killed in 2007. It took a couple years.
LOLlooloooLOLOOLOOLOOLOLLLLOLOLOLOLLO!!!
This is just like when the point and shoot camera builders said iPhones had no impact on sales.
Just wait till AppleWatch2 or 3. When it has built in GPS it will be game over for fitbit.
The P&S makers experienced a fall in sales, Fitbit sales increased nearly 300%, so you are about 400% away from reality.
Until Apple offers the iPod Shuffle of watches, there will always be need for lower priced alternatives. As wearable functionality improves, adding "smart" elements to these more limited devices, like NFC and payment chips, will keep them in business with essential functionality. Not everyone needs all the features of the ?Watch. Notifications are not essential, among other bells and whistles included with the ?Watch.
When the gen 2 Watch comes out, and the gen 1 watch drops down to $250, we'll finally get a better picture of how the ?Watch is going to errode the fitness band market, if at all.
It could be argued that for a while there will be a halo effect from all of Apple's marketing that will benefitting all makers of fitness gear. Apple have grown the market I assume. People who had never thought of it become aware, look at the prices and decide to test the water at the low end. How long that benefit to non Apple devices will last remains to be seen. I think we are seeing this same scenario play out with Android phones. At some point when people become convinced this is a great idea they want the real deal.
Sales of BBRY (RIMM) also went up for a couple of years after the iPhone. Look where they are now.
Smartphones as a whole helped destroy those markets. The iPhone was a major contributor but didn't do it by itself.
Don’t ever kid yourselves. All market “segments” keep a keen eye on Apple at all times to see what the tech giant is up to. If they see the slightest hint that Apple is eyeballing their turf they go into instant panic mode. Hence the blathering from Elon Musk, Swatch, Fitbit, the entire Swiss watch industry. It gets comical at times. “No, no, no, we’re not worried about Apple, hah, ha, hah. Then the CEO goes into their private bathroom and shits their pants.
That said Blackberry sales increased for several quarters after the iPhone was introduced. Today it's near impossible to find one.
On the high end I think the Apple Watch is already the dominant wearable, but it's still early in the game, come back in 2 years and let's see how things are shaking out then.
So Apple sells a Billion dollars worth of apple watches and its a failure, Fitbit sells $409m and its a raging success. I guess I don't get Wall street
But seriously I think if Apple Watch sales aren't too great then Apple will pull out bigger guns for gen. 2, it has to happen regardless. We're gonna see exclusive features we never even thought of. I know Apple hired an engineer that focuses on super advanced level fitness tracking. Like sci-fi level sh**.
android phones are just cheap imitations of iPhone.
If someone had told me in 2006 that a future Apple invention would be used by 3 billion people, I'd be in disbelief.
*Steve Ballmer laughing at iPhone gif*
^someone please make it.
- the iPhone redefined smartphones and smartphone camera expectations, and was immediately cloned
- the iPhone camera remains the #1 device on photo sites like Flickr
- the iPhone is the single-best-selling smartphone
- apple is the biggest camera seller by volume.
so yeah...it basically did it by itself.
Different market segments. I wonder how fitbit's competitors made out.
Moreover the stainless Watch costs as much as the iPhone 6. For someone who just wants to track their fitness, that's a big commitment. Also, Black berry dismissed and ignored Apple. If Fitbit does the same thing as Apple enters their market segment, then they deserve Blackberry's fate. But it took Apple a long time to enter the Android space. Unless they've really changed their tactics, I doubt the ?Watch will be a race to the bottom either.
People said the same thing about Point and shoot cameras
People said the same thing about stand alone GPS
People said the same thing about portable DVD players
Those are all niche devices that iPhone destroyed.
The Watch will do the same thing to stand alone activity trackers.
There will still be a market for them, but it will be extremely niche and dominated by cheap POS like $20 China brands.
Fitbit will be bankrupt in 3-5 years. So much so I may take a short position on the stock next year.
Smartphones as a whole helped destroy those markets. The iPhone was a major contributor but didn't do it by itself.
Yup. Plus, there's a HUGE difference in a small camera that costs $100 loosing its market to a device that was on your phone (not even smart phone) whether you wanted it or not, the phone being a device and service you were not going to do without, and a $75 dedicated fitness device loosing its to a $600 one that may do much more but not without the rest of your ecosystem being involved.
The market for a product like a Fitbit would be in trouble if there was a Watch bundled for $100 extra with every iPhone. Otherwise I expect there to be more than enough $75 Fitbit type presents for Xmas. They're not competing for the same dollar any more than iPads are for XBox dollars.