Fitbit released its first smartwatch in the Ionic in 2017 after specialising solely in fitness trackers, and now during its latest earnings call, the company has confirmed that it will produce more smartwatches in the year ahead.
Fitbit hasn't revealed any details about any future wearable devices, but did say that the development and launch of the Fitbit operating system and SDK has allowed the company to "scale future smartwatches quickly and deliver dynamic experiences for users", while also delivering a more "mass-appeal" product, since the Ionic still focused heavily on health and fitness tracking.
Fitbit has identified that smartwatches are indeed the way forward for its business. Even though it recorded a loss of $45.5 million for the fourth quarter leading up to December - and a total of $277.2 million for the year - the average selling price of the 5.4 million products it sold in the final quarter rose to $102, thanks largely to the introduction of the Ionic.
Fitbit's earnings call also indicates that customers are shifting towards smartwatches, and away from fitness trackers, as the company sold 7 million fewer devices in 2017, compared to 2016. As a result, Park told Market Watch that Fitbit is "gradually end-of-lifing" a few products on the fitness tracker side of the business, as it looks to streamline its product offering, while also focusing on a smartwatch future.