Shares of Fitbit, which has struggled with choppy revenue and declining devices sales, shot up 5.09% to $3 after the company unveiled its new product offerings.
The upgraded Versa, which will also include payment capabilities as well as a "brighter" and "crisper" display, faster processing, and the Spotify music app, will offer a more formidable competitor to the Apple Watch, which has grabbled market share from Fitbit.
"While Versa Lite received good press and consumer reviews, we saw that consumers were willing to pay more for a smartwatch with additional features or look for discounting versus everyday value," Fitbit CEO James Park said recently in a conference call with stock analysts.
Fitbit also rolled out a premium subscription service that will cost $10 a month or $80 a year, which is part of a broader move by the company to shift sales from devices to services. The new service will offer personalized coaching, sleep tracking features, health reports and workouts.
"Looking ahead, we continue to transform our business from an episodic one centered around the device sale to a lifetime value-driven model centered around behavior change," Park said.
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