As part of its quarterly earnings announcement, Fitbit announced that half of its revenues now come from smartwatch sales.
“We are now the number two player in the smartwatch space in the U.S., a category we just entered with zero share only fourteen months ago,” Fitbit co-founder and CEO James Park said in a prepared statement. “We also launched our most advanced tracker yet, Fitbit Charge 3, which is blurring the lines between trackers and smartwatches and is already one of the top selling devices in the U.S.”
Fitbit posted net income of $10 million on revenues of $394 million in the quarter ending September 30. It sold 3.5 million devices in the quarter, down slightly from the 3.6 million in sold in the same quarter a year ago. But because the device mix has shifted since then—49 percent of Fitbit’s device sales are now smartwatches—so, too, has the average selling price (ASP). So Fitbit is earning more—$108 on average—per device sold.
This shift enabled Fitbit to return to profitability, too: In that year-ago quarter, the firm lost $2.8 million. And with the number one player in the smartwatch market, Apple, selling its products for double or more the cost of a Fitbit Versa, the hope is that this trend will continue.