Apple must be losing its touch, because not only was Apple Music unable to disrupt the music streaming market the way that competitors like Spotify feared, it looks like the Apple Watch is also having a minimal effect on the competition. After going public just a few months ago, Fitbit has announced that its revenue has increased by 168% year on year, resting at a nice $409.3 for last quarter. The company even dismissed the Apple Watch, saying that Apple’s smartwatch actually had “no material impact” on its growth.
Fitbit has announced that months after the company went public in June, its revenue is up 168% year on year, according to its third-quarter earnings report. Despite the better than expected revenue – rising to $409.3m from $152.9m a year ago – the stock for the company dropped by as much as 9% in early after hours trading on Monday. This was due to the company’s announcement that it will be selling additional 7m shares and some of its shareholders will be selling 14m shares. That means more than 20m more shares will flood the market. “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,” James Park, Fitbit co-founder and chief executive, said in a statement. On a conference call with investors, Park said that the rollout of other smart watches, which often come with a step-tracker similar to Fitbit’s main function, did not have impact on the company’s growth. When asked about Apple’s new watch specifically, he said it had “no material impact”. He added that Apple and Fitbit cater to “two very different segments in the market” in terms of price point and use. The price range for Fitbit devices, most often worn as a wristband, is $60 to $250. Apple Watch starts at $349 and can cost more than $1,000.