For a while, there were worries that Fitbit wasn't going to be able to keep up with the needs of wearable consumers, who were quickly abandoning fitness trackers for more versatile and powerful smartwatches.
In its Q2 financial earnings, Fitbit announced that the Versa sold out in the second quarter of the financial year. It claims that its "mass appeal" smartwatch outsold Samsung, Garmin and Fossil smartwatches in North America - combined. That's right, it sold more than the smartwatches from all those companies combined.
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Smartwatches now make up of 55% of Fitbit's revenue, that's up from 30% on a sequential basis. While Fitbit isn't splitting out individual device sales, it says it sold 2.7 million wearables in the quarter. As smartwatches have taken up a growing percentage of its products, its selling price rose to $106, up 6% year over year.
Fitbit's newest devices - the Ionic, Versa, Ace, Aria 2 and Flyer - made up 59% of its revenue. Versa seems to be the star of the show here, with CEO James Park highlighting that it's selling so well it's winning retail shelf space for Fitbit.
Fitbit's health features in its app are also doing well. Female health tracking now has 2.9 million signups. 60% of new activations are from new users, while the remaining were repeat buyers. Of the repeat buyers, 51% of them were inactive for 90 days or more - that's up from 39% year-over-year. A lot of that has to do with old Fitbit fitness tracker users moving to Fitbit's smartwatches.
These financials are wonderful news for Fitbit, who has now shown that it can adjust to the shifting wearable market, which is increasingly opting for smartwatches rather than fitness trackers.
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