The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
SAN FRANCISCO, United States — Fitbit Inc. isn't intimidated by the rise of the Apple Watch. The company's wearable fitness trackers have a longer battery life, cheaper price range and a more clearly defined audience that give the devices an edge over smartwatches, said Woody Scal, Fitbit's chief revenue officer.
While acknowledging that Apple Inc. has started to popularize the smartwatch, the category is “more hype than reality,” Scal said in an interview. “Consumers are still asking, ‘Why do I want one? Why do I need one?’"
Those aren’t questions for Fitbit users, who typically have clear goals in mind when buying a fitness tracker, he said. Though smartwatches also come with health-monitoring features, like step-counting, Scal said smartwatches’ short battery lives put them at a disadvantage to Fitbit’s products, which can go days without charge, meaning consumers can track their sleep overnight and monitor their heart rates around the clock.
Apple has said that its customers love the watch — 97 percent were satisfied with the device and said it was improving their health and daily routines, according to a survey. "The feedback from Apple Watch customers is incredibly positive and we’ve been very happy with customer satisfaction and usage statistics," CEO Tim Cook said during a July conference call. Cook has said the Apple Watch is still in its infancy, in terms of applications and uses that will eventually be developed for it.
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Wearables Market
San Francisco-based Fitbit has so far dominated the wearables market, selling about 4.4 million devices in the second quarter, according to an August report by market research firm IDC. Second-quarter revenue more than tripled to $400.4 million from a year earlier.
Fitbit is facing increasing competition, with China-based Xiaomi Corp., Jawbone Inc., and Samsung Electronics Co. vying for a piece of the action. Apple has beat analysts' expectations for its watch, selling an estimated 3.6 million units, according to IDC's report. Apple is holding to product event Wednesday where it will reveal a new version of its iPhone; the watch isn't expected to play a major role at the session.
Since its June 17 initial public offering, Fitbit’s shares have gained 77 percent to $35.46 through Tuesday.
Scal also touted Fitbit’s less-expensive prices, which range from about $60 to almost $250 for its newest product, the Surge, which comes with call and text message notifications. Apple’s watch starts at $349.
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