- Charge 5 has a new high-res colour screen, an EDA sensor, an ECG sensor and new tools for tracking energy levels and suggesting workouts.
- Fitbit has sold more than 136 million devices in more than 100 countries and with nearly one million premium subscribers.
- Counterpoint sees demand for smartwatches growing and people are seeing more value in a watch form factor rather than a band.
- Counterpoint analyst does not see a bright future for Fitbit’s hardware portfolio but more for its software and services portfolio as Google set to integrate Fitbit’s features into Android Wear.
Google-owned Fitbit has unveiled a new and advanced smart tracker – Charge 5 – to boost its sagging market share and revenues.
Google acquired Fitbit for $2.1 billion and the deal was completed in January this year.
The US smartwatch and smart band maker Fitbit sold 10.8 million devices in 2020, a 31 per cent year-on-year decrease from 16 million in 2019 while its revenues fell by 20 per cent year-on-year to $1.3 billion last year.
The key players in the wearables market are Fitbit, Apple, Xiaomi Technology, Garmin, and Samsung Electronics.
James Park, CEO of Fitbit, said that Charge 5 is the most advanced tracker and the company’s mission is to make everyone in the world healthy.
He said that 2020 has taken a huge toll on both physical and mental wellbeing and 2020 was the most stressful year in recent history with a record high of 40 per cent of adults worldwide saying that they have experienced a lot of stress compared to 2019 while 61 per cent of US adults have experienced undesired changes in body weight.
“Today, more than 60 per cent of people around the world think healthy means mental wellbeing and feeling good while more than 50 per cent think that it is physical strain. As we look ahead to what is next, we wanted to think differently about stress and strain,” he said.
Fitbit has sold more than 136 million devices in more than 100 countries and with nearly one million premium subscribers.
“Our smartwatches and trackers at different price points, app and with premium memberships delivers a personalised experience helps you navigate what is best for your body, no matter where you are on your journey,” Park said.
Transitioning to smartwatch
According to Counterpoint Research, Fitbit’s market share fell from 4.5 per cent in the first quarter of 2020 to 4.2 per cent despite the overall smartwatch market growing by 35 per cent.
Neil Shah, Vice-President for Research at Counterpoint, said that the demand for smart bands globally is declining but the smartwatch market is growing.
According to research firm Gartner, smartwatch end-user spending will grow from $21.8 billion in 2020 to $25.83 billion this year and $31.34 billion next year as new processor technologies and improvements to solid-state batteries increase battery life and shorten charging times.
At the same time, wristband end-user spending will fall from $4.99 billion in 2020 to $4.91 billion this year and $4.48 billion next year.
Many of the users are transitioning to a smartwatch, Shah said, and with the entry of Chinese brands, the watch prices have declined to below $100.
The sub-$100 smartwatch segment grew a massive 547 per cent annually, highlighting its mass-market reach.
“In terms of price points, there is no big difference between a smart band and a smartwatch. People are seeing more value in a watch form factor rather than a band,” he said.
For Fitbit, he said that most of the sales come from the US, part of Europe and other developed countries.
In these countries, he said that most of the users are on Apple and so transitioning to Apple Watch and if on Android, they transition to Samsung Galaxy watches or to cheaper watches from Oppo, Xiaomi and Realme.
Now being part of the Google family, Park said: “We are excited about what the future holds. With access to Google’s incredible resources, we will be able to innovate faster and provide even more choices to support the world’s health and wellness needs.”
Moreover, he said that they will be making Fitbit’s some popular features available on Google Wear.
Android Wear to benefit
“We will be building premium smartwatches based on Wear that combines the best of Fitbit’s health and wellness expertise with Google’s ambient capabilities. We will share more on that soon. With Charge 5, we are bringing features which were available only on smartwatches such as EDA sensor and ECG app for more advanced tracking,” Park said.
Shah said that Fitbit is in a transitionary phase and Google will integrate Fitbit’s health and data analytics and algorithm into Android Wear as a service, similar to Apple’s health service.
“Google will try to reduce Fitbit’s product portfolio in the next couple of years and when Google comes out with its watch, it will axe Fitbit’s portfolio. So, I don’t see a bright future for Fitbit’s hardware portfolio but more for its software and services portfolio,” he said.
Dennis Hsu, Group Product Marketing Manager at Fitbit Trackers, said that Charge models was the best-selling device since its introduction in 2014 and was the most popular wearable in the world.
“We have sold more than 40 million Charge devices sold and have a strong user base of one in three Fitbit users today. Charge 5 is 10 per cent thinner than Charge 4 and still provides seven days of power,” he said.
Not only does the Charge 5 seem to have a new high-res colour screen, but it also appears to have an EDA sensor like that found on the Fitbit Sense, an ECG sensor, and new tools for tracking energy levels and suggesting workouts.
The Fitbit Charge series sits in between the Inspire and Versa lines in terms of both size and features.
Salient features:
- On-wrist ECG app and an EDA sensor for tracking stress levels.
- New health metric called the Daily Readiness Score, available only to premium users, to calculate readiness for a workout and suggests tips to do on a given day based on heart rate, sleep, and activity.
- Customers who pre-order Charge 5 will get six months of Fitbit Premium subscription at no extra cost.
- The Fitbit Charge 5 comes in Graphite and Black, Platinum and Steel Blue, and Gold and Lunar White colour options..
- It comes with a 1.04-inch colour AMOLED touchscreen display with 450 nits of peak brightness, an Always-On mode, and no buttons.
- The tracker features 20 colourful watch faces, built-in GPS + GLONASS, SpO2 sensor, skin temperature sensor, and optical heart rate monitor as well as NFC.
- It has a water resistance up to 50 metres and compatible with both Apple and Android devices running iOS 12.2 or higher and Android 8.0 or higher, respectively.
- It takes about two hours to charge.
- Fitbit Pay in select markets.
- Fitbit tracker includes 20 goal-setting exercise modes, real-time active zone minutes tracking, automatic exercise recognition, and sleep monitoring.
- It is priced at $179.95.