Fitbit sales keep growing, as Apple Watch caters to a ‘different segment in the market’
For a still fledgling and immature market, the wearable landscape is sure open to a lot of device manufacturers with several distinct positioning strategies. Although analysts often combine basic, low-cost fitness trackers and more advanced, premium-looking smartwatches to provide sales estimations and forecasts, it’s important to separate the two classes and grasp there’s room under the sun for both.
At least that’s what Fitbit claims, after posting yet another quarterly growth, undeterred by the Apple Watch’s own recent upsurge. Granted, wrist-worn gizmos like the Flex, Charge or Surge only marginally boosted their total shipment numbers between Q2 and Q3 2015, but that’s because they already reached previously unimaginable peaks.
In the April – June timeframe, Fitbits stood at an impressive 4.5 million unit sales, a score improved to an even more remarkable 4.8M in the July – September window. As the holiday season approaches, the San Francisco-based health specialist is probably looking at its first 5 mil+ quarter, which is really something, given the tally for the entirety of last year couldn’t cross the 11 million mark.
Oddly enough, the company’s stock price dropped on the heels of the latest financial announcement, due to around 20 million shares “flooding the market” as we speak. Q3 revenue was up a massive 168 percent year on year, from $152.9M in 2014’s third fiscal quarter to $409.3M now.
Those are far from Apple-matching figures, and that’s exactly the point Fitbit co-founder and CEO James Park made in press statements. Activity trackers aren’t better or worse than smartwatches, they’re simply “different”, and so, the Apple Watch predictably had “no material impact” here.
Unfortunately, budget-only propositions tend to burn out rather quickly, and the IDC recently projected basic wearables will soon fall behind their swankier cousins.
Source: The Guardian