• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
TechFitbit

While Apple and Other Smartwatch Rivals Go High, Fitbit Goes Low—In Prices

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
March 6, 2019, 9:00 AM ET
Add Fortune on Google for similar content.

Fitbit is pushing a smartwatch strategy that’s noticeably different from rivals Apple, Garmin, and Samsung: Lower prices.

On Wednesday, Fitbit unveiled four new devices, all priced below its previous smartwatches and some below its most popular fitness trackers, as well. And the struggling company offered a few hints about a new effort to raise revenue through a premium subscription service.

The most expensive of the new products, called the Fitbit Versa Lite, is a smartwatch that lacks a few features available on the company’s 2018 hit, the Versa. Priced at $160, the Versa Lite costs 20% less, but can’t count the number of laps a user swims, store music files, or be used for mobile payments. It still includes sleep tracking, four-day battery life, and compatibility with Fitbit’s app ecosystem. Fitbit also said it would continue selling the original $200 Versa and $300 Ionic, introduced in 2017, without any hardware updates yet (“stay tuned on that front,” says CEO James Park).

Other new products introduced on Wednesday were even cheaper. A new fitness tracker with a touchscreen display, called the Inspire, will cost just $70. A model with heart-rate tracking, called Inspire HR, costs $100.

They’re both meant to update a couple of Fitbit’s aging trackers, such as the Alta and the Zip. Finally, the company updated its Ace tracker for kids with a model called the Ace 2 that, at $70, will cost 30% less than the earlier edition.

The goal is to increase the number of active users of Fitbit devices and then sell them a new subscription service that is supposed to debut in the second half of this year, CEO Park tells Fortune. Without revealing much detail, he said the subscription would include more coaching, guidance and content to help users with issues like weight management, improving sleep, and reducing stress.

“It’s really not just about the devices for us anymore but thinking about our business model as a combination of devices and services,” Park says. “We really focused this spring’s launch on making sure that our products were much more affordable and simpler to use.”

Services could also help improve Fitbit’s profit margin. The company’s gross profit was about 40% of its revenues last year. Digital services could be much more profitable if they can attract enough customers. Apple disclosed it reaped a 63% gross margin on its services last quarter, for example.

Lower-priced devices should also help Fitbit attract more healthcare plans and large employers to its burgeoning corporate business. Insurers like UnitedHealthcare and Humana are giving customers Fitbit trackers to help them exercise more regularly. That boosts device sales along with some services Fitbit offers the insurers. Fitbit’s healthcare business should hit $100 million of revenue this year, Park says.

Apple (AAPL) went in the opposite direction with its smartwatch lineup last fall. The Apple Watch Series 4 started at $399, up from $329 for the previous year’s entry-level edition. A model with cellular connectivity costs $499, up from $399. And Garmin (GRMN) is expected to add a price premium to a new version of its $280 vivoactive 3 Music smartwatch that will include cellular connectivity and go on sale in the next few weeks. None of Fitbit’s products yet come with cellular connectivity.

Fitbit is also developing a loyalty program that will let customers earn points from activities tracked on their Fitbit devices that will be redeemable for discounts on Fitbit products and rewards from partners such as Adidas, Blue Apron (APRN), and Deezer. Fitbit noticed that a program used by UnitedHealthcare to reward members with up to $1,500 a year in rewards for exercise activities gained popularity and it decided to offer something similar to its own customers, Park explained. “It really incentivized people so we’re taking what we learned there and applying it to our consumer side,” he said.

And all Fitbit customers should have access to an overhauled mobile app for their phones soon, Park said.

Park and his team are still trying to pull Fitbit (FIT) out of the doldrums. Sales of fitness trackers peaked at 22.3 million in 2016, a year after Apple introduced its first smartwatch. Fitbit’s first smartwatch, the Ionic, didn’t go on sale until over two years after Apple’s and was hardly a smash hit. With more consumers seeking more capable smartwatches, Fitbit sold only 15.3 million devices in 2017 and 13.9 million last year. And Fitbit’s stock has lost over 70% of its value since the company went public almost four years ago.

Wednesday’s device announcements comes a week after Fitbit disappointed Wall Street with its fourth quarter results and a weaker-than-expected forecast for 2019.

Revenue of $571 million was unchanged from a year earlier and slightly better than analysts expected. But a forecast of $1.52 billion to $1.58 billion for this year, versus $1.51 billion in 2018, disappointed investors and ended a recent stock rally. After finishing 2018 below $5 per share, Fitbit’s stock had rallied to just under $7—until the quarterly results on Feb. 27. The stock has since slumped, closing at $5.92 on Tuesday.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
Investingstock prices
Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
By Marco Quiroz-GutierrezJuly 2, 2026
12 hours ago
U.S. Treasury Secretary Scott Bessent
EconomyDebt
AI’s $2.2 trillion deficit fix is already half fake, economists say
By Tristan BoveJuly 2, 2026
13 hours ago
Anthropic CEO Dario Amodei
AIEye on AI
Anthropic’s Fable model is back. But U.S. AI policy is still a mess
By Jeremy KahnJuly 2, 2026
13 hours ago
ai
North AmericaImmigration
Trump’s $46 billion ‘smart wall’ with Mexico bets on AI and scale
By Rebecca Santana and The Associated PressJuly 2, 2026
15 hours ago
sk
AISouth Korea
AI “grief videos” turn mourning into a $390 service in South Korea
By Hyung-Jin Kim and The Associated PressJuly 2, 2026
15 hours ago
Securitize CEO Carlos Domingo looks to the far right during a conference.
CryptoBlockchain
Securitize is latest crypto company to go public as BlackRock-backed firm sees stock jump 3% on debut
By Camila Grigera NaónJuly 2, 2026
15 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
15 hours ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
1 day ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
17 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
18 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.