Apple Watch Series 4 shakes Fitbit
Fitbit (FIT) stock tumbled shortly after Apple (AAPL) unveiled its latest smartwatch model, the Apple Watch Series 4. The new Apple smartwatch is packed with more fitness and health tracking features than its predecessors. As a result, the Apple Watch Series 4 appears to venture further into Fitbit’s fitness and wellness territory.
As a tech giant with deep pockets, Apple can mount a powerful marketing campaign to challenge its competitors. However, Fitbit isn’t completely overshadowed in its competition with Apple in the smartwatch market.
Consumers opting for low-cost watches
According to recent smartwatch market data from Counterpoint Research, consumers appear to be drawn to less costly devices. Budget devices dominated the list of best-selling smartwatch brands in the second quarter, according to Counterpoint data.
If consumers are drawn to low-cost smartwatches, Fitbit appears to have the upper hand in this round. Its latest watch model, the Versa, retails for half the price of the basic Apple Watch Series 4. The Versa retails for $200 while the Apple Watch Series 4 device starts at $399.
Fitbit making waves in the smartwatch market
Although Fitbit (FIT) ventured into the smartwatch business a few years after Apple made a move into this space, it’s already disrupting the status quo. In the second quarter, Fitbit grew its smartwatch market share by more than 160.0% YoY (year-over-year) to 21.0%. Apple’s market share dipped to 41.0% from 48.0% YoY.
Fitbit’s revenues declined 15.3% YoY to $299.3 million in the second quarter. GoPro’s (GPRO) revenues declined 4.7% YoY in that period.