Fitbit Sees Strong Demand for New Smartwatch

Posted on August 2, 2018 by Paul Thurrott in Hardware, Mobile with 5 Comments

Fitbit announced this week that its recently-launched Versa smartwatch is off to a strong start and has outsold Samsung, Garmin and Fossil smartwatches combined in North America.

This revelation came as part of the wearable firm’s quarterly earnings report, in which Fitbit posted a net loss of $118 million on revenues of $299 million, beating expectations.

“Our performance in Q2 represents the sixth consecutive quarter that we have delivered on our financial commitments, made important progress in transforming our business, and continued to adapt to the changing wearables market,” Fitbit co-founder and CEO James Park said in a prepared statement. “Demand for Versa, our first ‘mass-appeal’ smartwatch, is very strong. Within the second quarter, Versa outsold Samsung, Garmin and Fossil smartwatches combined in North America, improving our position with retailers, solidifying shelf space for the Fitbit brand and providing a halo effect to our other product offerings.”

Fitbit launched Versa in March at an affordable $200 price point, and the firm revealed in June that it had since sold over one million units.

This week, Fitbit said that it had sold over 2.7 million wearable devices in the quarter ending June 30. And that revenues from smartwatches were now 55 percent of its total. As a result, the average selling price of its devices has risen, by 6 percent, to $106.

 

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