Apple Watch may have some smartwatch makers worried, but it certainly isn’t a concern for Fitbit. The company insists Cupertino’s first wearable has had “no material impact” on its business after reporting a staggering 168 percent increase in revenue.
Fitness and activity tracking is one of the Apple Watch’s best features. Not only can it record all the data you expect to see — such as distance traveled, calories burned, and heart rate — but it also encourages users to workout and be more active.
But despite all this, it seems most fitness fanatics still prefer a Fitbit. According to the company’s third quarter earnings report, revenue is up 168 percent year-on-year, rising from $152.9 million in the third quarter of 2014 to $409.3 million last quarter.
Fitbit sold 4.8 million devices in total during the three-month period, up from 4.5 million in the second quarter of this year.
“Fitbit’s third quarter results demonstrated the continued rapid growth of the Fitbit platform and our team’s ability to execute on the tremendous opportunity we see globally, as we help people reach their health and fitness goals,” said James Park, Fitbit co-founder and CEO.
Park added that the increase in smartwatches, almost all of which have fitness tracking functionality, have had no impact on Fitbit’s growth so far. When asked about Apple Watch specifically, Park said that the device had had “no material impact,” reports The Guardian.
Park believes that the big reason for this is not only the different use cases, but also the difference in price between a Fitbit and an Apple Watch. While the former starts at just $60, entry to the Apple Watch ecosystem costs at least $349.
“There’s over $200bn of consumer spending on health and fitness. This is a massive market. There’s room for more than one dominant player,” Park continued. “The brand Fitbit is really synonymous with health and fitness tracking, so we feel that we have really significant competitive differentiators in the market.”
Despite its massive revenue increase, however, Fitbit stock fell by as much as 9 percent on Monday. This is due to the company’s decision to sell an additional 7 million shares, while another 14 million will be sold by shareholders. This means more than 20 million Fitbit shares will be entering the market.
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