Versa might help Fitbit stop sales decline
As we saw in the previous part of this series, Fitbit (FIT) is struggling with declining sales. Its revenue fell 25% in fiscal 2017 to $1.6 billion. Its revenue is expected to fall 8% to $1.5 billion in fiscal 2018. Fitbit, which has attributed its declining sales to a saturated domestic market, will need to quickly turn around its sales in order to attract investors.
Last September, Fitbit launched the Ionic, a smartwatch with a built-in GPS (global positioning system), personal coaching, and heart rate monitoring. In March, it launched the Versa, which has been available for purchase in retail outlets since April 16. So how does Versa compare with Apple Watch?
Versa is cheaper than Apple Watch 3
Fitbit competes with Apple, Garmin (GRMN), Fossil (FOSL), and China’s (FXI) Xiaomi and Huawei in the wearables segment. Versa sells for $199, while Apple Watch 3 (only GPS) sells for $329 and Apple Watch 3 (GPS + cellular) sells for $399 on Amazon (AMZN). Versa is also less expensive than the Apple Watch Series 1, which is available from $249.
Fitbit is claiming that Versa is the lightest metal smartwatch in the United States. According to a cnet.com report, Versa’s vibrations are rather weak, which might cause users to miss notifications.
The Versa and Apple Watch 3 are both water-resistant up to 50 meters. While Versa is compatible with iOS and Android mobile platforms, Apple Watch is tied to the Apple ecosystem, and users can unlock a MacBook from the device. Fitbit Pay is available on the special edition, which can be purchased for $229.99. Apple Pay can be connected to the Apple Watch.