Skip to main content

Fitbit warns against highly competitive factors like Apple Watch in IPO filing

Screenshot 2015-05-07 13.45.31

Earlier today, fitness tracker hardware and software company Fitbit filed to go public on the New York Stock Exchange. Since the regulatory filing went public, observers have been scouring the paperwork for information on Fitbit’s financials, sales numbers, and notes about the competition. The Financial Times‘s Tim Bradshaw noticed that that Fitbit cites Apple and the recently-launched Apple Watch as the top billed competitor in the IPO Risk Factors section:

For example, Apple has recently introduced the Apple Watch smartwatch, with broad-based functionalities including some health and fitness tracking capabilities. We also compete with a wide range of stand-alone health and fitness-related mobile apps that can be purchased or downloaded through mobile app stores.

Since Apple launched health tracking products like the Health app in iOS 8 and the Apple Watch Activity and Workout apps, Fitbit has moved to distance itself from the Cupertino-based company. The Fitbit hardware products were removed from Apple’s online and physical retail stores late last year, while, on the software front, Fitbit has stated that it has no plans to update its products to work with Apple’s HealthKit software framework.

Given that Fitbit’s hardware products are in the same category as the Apple Watch, it is also interesting to take a look at Fitbit’s financial numbers. According to the IPO documents, Fitbit sold just under 11 million devices across 2014 and reported revenues of $745 million with an average corporate margin of 48% during that year. As for Apple, the company says that the Apple Watch’s margins, at least at launch, will come in under the company’s corporate average.

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

  1. mobileseeks - 9 years ago

    Had a Fitbit and it kept falling off until eventually I lost it at the beginning of the year. No way I was going to give them another $ of my money for such poor design. Maybe my Apple Watch costs 4x as much but it is way more than 4x better than the junk Fitbit is peddling.

    Not going to work with HealthKit? Not you are just being stupid and ignoring 50% of the market. Good luck with your Android users.

    • rnc - 9 years ago

      That choice of not supporting HealthKit is just dumb and arrogant, they want other Apps to be ONLY compatible with fitbits.

      There are 3rd party apps on iOS for FitBits that work with HealthKit, tough…

      • nono68200 - 9 years ago

        I agree with you. Just for this reason, to say “we will never support HealthKit”, I will never buy Fitbit products. (I was using software from them, but removed it). We will see in some years if they will not support it yet…

      • varera (@real_varera) - 9 years ago

        Yes, it is dumb and even dangerous for them. With lower prices and less features than on Apple Watch they still could address Apple users and take some marketshare instead of alienating them.

  2. Adam Herstein - 9 years ago

    I’ve had the Fitbit scale for a while, and their refusal to support the Apple Heath app and other Apple products is what prompted me not to purchase any more of their products. Alienating your customer base is not the way to run a business.

  3. ilmondoinbellezza - 9 years ago

    very good

  4. BD1 (@bdtrader) - 9 years ago

    I had a fitbit charge HR. The HR recording was terrible when exercising. The Apple Watch works much better.

    • Grayson Mixon - 9 years ago

      I just bought a Charge HR on Tuesday. It’s pretty accurate. I like the hardware. The software sucks. Does not integrate with Runkeeper or HealthKit. Fitbit’s website only shows heart rate data for the current day. I can see previous days in the app, but I can only see a general graph, not the actual numbers.

      I bought it over the Apple Watch because I can wear it 24 hours a day, even while I’m sleeping, instead of charging it all night, and because it samples much more frequently.

      I’m hoping the software gets fixed. There’s no reason it can’t be fixed without having to buy a new device, and this seems to be a lower cost sensor to tide me over until the much improved Apple Watch 2.

      • BD1 (@bdtrader) - 9 years ago

        Good luck with Fitbit. Their forums are filled with examples of HR being inaccurate during exercising. I actually bought 2 and returned both because of this.

      • Kenneth B (@kwbarrett) - 9 years ago

        Every report I’ve ever heard of the Charge HR has said that the heart rate is only accurate in light to moderate activity. As soon as running or any real movement begins, heart rate is wildly inaccurate. That’s the problem with the vast majority of trackers that rely on optical heart rate monitoring. Kinda sucks for those of us who do heart rate training.

  5. mryarble - 9 years ago

    Reblogged this on MrYarble and commented:
    If Fitbit doesn’t make a better product or jump onto Health kit, I feel it will not do well. I had a flex and it stopped working after a year and have a charge at the moment. It works fine, but I expect it will stop working after a year or so.

    • Kenneth B (@kwbarrett) - 9 years ago

      You really think HealthKit integration is necessary? Why? I’ve had 3 trackers, all of which integrate with HealthKit. However, I have never seen the need to activate that feature. Honestly, I get more than enough info from the device and their respective apps. I just don’t see a need. I can even export my data to RunKeeper or MyFitnessPal. Is there something I’m missing?

  6. surfingarbo - 9 years ago

    What I am impressed with is, Withings, who also make a fitness watch (Activité), have just released their Health Mate app for the Apple Watch. So whilst Activité is somewhat of a competitor to the Apple Watch, Withings have still embraced both the Apple Watch and Health Kit. Good on Withings for seeing the value in this.

    • Kenneth B (@kwbarrett) - 9 years ago

      I had an Activite Pop, but was never able to get it to sync with my iPhone. Returned it. I now use a Garmin Vivoactive and love it.

  7. Rio (@Crzy_rio) - 9 years ago

    It is actually ridiculous how stubborn they are and it makes no sense. They lose atleast half of iPhone owners to other brands simply because of no support for health kit.

    The only reason I still have my scale from them is because Fitbit Syncs with myfitnesspal and then myfitnesspal syncs with Health kit, which is pretty ridiculous.

  8. varera (@real_varera) - 9 years ago

    In my view they are idiots. with 5 days battery life on my Fitbit Charge HR it is indeed really stupid not to expand by interacting with Apple line. They are digging their own grave.

    • varera (@real_varera) - 9 years ago

      That said, as soon as apple watch is running 36h or more between charges, I will be switching to it. The only thing i miss there is sleep tracking, with is not practical with 16h battery

  9. Gary Dauphin - 9 years ago

    If you were smart, the day the FitBit IPO hits the market, let it rise to its peak and then short the stock. That ship will sink, like it or not (I am a happy fitbit owner).

  10. David Warden - 9 years ago

    Happy FB One owner (and wife is too).- Apple watch is just not for me even though I own 12+ Apple devices. No interest in twisting my wrist hundreds of times a day and then using my other hand to touch the screen / controls. I can easily use my iPhone 1 handed. There will be some repetitive motion injuries for sure.

  11. Leslie J. Hill - 9 years ago

    I was actually going to replace our FitBit Flex’s with the FitBit Charge HR tomorrow. After reading this, and our having the iphone 6 Plus’s and FitBit going to ignore those of us that use IOS… not a problem. We have been a FitBit family for sometime now. We will take our dollar’s to Apple. You had a good thing going, now you’re going to cut off your nose to spite your face. Prove us wrong