Cutting the screen, with an annual fee of over a thousand: Why does this "minimalist" fitness tracker have a valuation of 20 billion? | Product Observation

Author: Ou Xue

Editor: Yuan Silai

In recent years, professional athletes like Cristiano Ronaldo, Phillips, and LeBron James have popularized a niche segment in the wearable technology field.

During training and post - game interviews, they frequently wear a minimalist fitness tracker. In terms of appearance, this tracker has no screen and resembles more of an accessory. Some of its watchbands are made of Italian leather, precious metals, or elastic knitted materials.

Despite lacking a screen, it claims to offer professional physical recovery advice. Soon, the concept of "screenless fitness trackers" quickly gained popularity overseas.

Market data confirms this shift. According to an IDC report, the global shipment volume of wrist - worn devices decreased slightly by 1.4% in 2024. Adult smartwatches in the US and Indian markets experienced a slight decline in global shipments due to economic instability, market saturation, and limited product innovation.

Meanwhile, WHOOP, the leader in the screenless fitness tracker segment, has seen its valuation soar from $1.2 billion (approximately 8.7 billion RMB) in 2020 to around 26.5 billion RMB in 2025. According to media data, WHOOP's annual revenue has exceeded $260 million, and its users are spread across 56 countries worldwide.

According to Hard Krypton's information, WHOOP products are manufactured in Shenzhen with a cost of less than 100 RMB. An investor told Hard Krypton that WHOOP's revenue this year may exceed $500 million.

Behind this contrast lies a shift in user demand: from simply obtaining data to seeking professional advice.

This trend has gradually attracted more players to enter the market. In June this year, Chinese brand Huami launched the screenless fitness tracker Helio Strap to test the waters in this category. In September, Finnish veteran fitness hardware brand Polar also announced its entry, releasing the Polar Loop screenless fitness tracker directly competing with WHOOP.

The battlefield, originally dominated by WHOOP, is becoming more lively. In fact, this is not just a competition between "screened" and "screenless" devices but also a contest regarding data interpretation capabilities and service models.

Whoever can provide users with more accurate and reliable health insights will win a larger market share.

Cristiano Ronaldo training while wearing a screenless fitness tracker (Source: WHOOP official website)

From Recording to Advising

WHOOP's inception stemmed from the personal experience of its founder, Will Ahmed, a former Harvard squash team captain. He and his teammates often found themselves in the predicament of "over - training" because they couldn't accurately quantify their physical states.

In 2012, he co - founded WHOOP with his alumni. Their goal was to address a fundamental pain point: the value of wearable devices should not stop at recording "what you've done" but should answer "what you should do next."

This original intention defines the essential difference between traditional wrist - worn devices and WHOOP: the former are "recorders" of data, while the latter are "interpreters" of data. The ultimate goal of wrist - worn device technology has begun to shift from data recording to advice - giving.

Looking at most wrist - worn devices on the market, they tend to "add more features." On their small watch faces, numerous functions such as communication, entertainment, and payment are piled up. Although health monitoring is often used as a selling point, these functions are just a part of the whole.

In recent years, using larger screens to display more information has become a common trend for wrist - worn devices. These devices will tell you your heart rate during exercise or the duration of your deep sleep at night. However, data is just data, and most of the data analysis work is left to the users themselves.

Screenless fitness trackers, on the contrary, focus on "subtracting." By eliminating the screen and reducing weight, they provide a more comfortable wearing experience. They cut out other irrelevant functions, focus on health monitoring, and provide decision - making feedback, thus shaping the image of a professional tool.

For example, WHOOP invests its core technological resources in monitoring three core physiological indicators: Sleep, Strain, and Recovery. Relevant important indicators include sleep, heart rate, blood oxygen, stress, menstrual cycle, maximum oxygen uptake, and aging speed.

WHOOP fitness tracker (Source: Company)

At the same time, compared with traditional smart wrist - worn devices, screenless fitness trackers set stricter standards for data collection to ensure the reliability of their guidance.

Take Polar Loop as an example. To ensure that the monitored data is from effective training rather than daily activities, certain duration and intensity requirements must be met. For instance, an activity must last at least 10 minutes to be stored as a fitness training session, and heart rate tracking only starts when the heart rate exceeds 50% of the heart rate reserve (HRR).

Polar Loop fitness tracker (Source: Company)

Huami's Helio Strap incorporates the BioCharge energy monitoring system, which scores users' energy status.

Daily body energy monitoring page of Huami Helio Strap (Source: Company)

The most crucial aspect is that these screenless fitness trackers not only list data but also provide targeted insights and advice.

On the WHOOP App, users receive not just raw data like "heart rate variability (HRV) is 45 milliseconds" but clear guidance such as "Your HRV is low. It is recommended to engage in low - intensity activities or rest to avoid potential hidden injuries caused by over - training." Through its Healthspan function, users can get daily advice on sleep, strain, and recovery to develop better daily habits.

This ability to "translate" complex physiological signals into actionable advice constitutes the core value of screenless fitness trackers. Thus, the competition in wrist - worn devices has also entered a new trend: from "hardware stacking" to "insight services."

Change in Business Model: "Hardware Sales" vs. "Service Subscription"

Differences in product positioning have led to a different business model for screenless fitness trackers compared to traditional wrist - worn devices.

WHOOP, the leader in screenless fitness trackers, was the first to bring about a change. In 2018, WHOOP broke industry conventions by eliminating the hardware price and fully transitioning to a subscription - based model.

Specifically, users don't need to pay for the hardware but need to subscribe to a membership service to unlock all functions. WHOOP divides its membership system into three levels: ONE, PEAK, and LIFE, with annual fees ranging from $199 to $359, targeting novice health managers, fitness enthusiasts, and professional athletes respectively, with a progressive and refined operation strategy.

From one - time hardware sales to long - term subscription services, the connection between the company and users becomes closer and more continuous, and the company's service nature becomes more prominent.

Amazon data shows that this model is successful. Amazon platform data indicates that from May to June 2025, WHOOP's main product, sold at a bundled price of approximately $359 (including the device and a 12 - month subscription), achieved monthly sales of over $2.4 million.

However, the newly - entered Polar has chosen to adhere to the traditional hardware sales logic. Its launched Polar Loop fitness tracker is priced at $199, using a one - time purchase model without any membership subscription.

This is also why the market believes that Polar is directly challenging WHOOP. Although both agree on the screenless concept, Polar's strategy addresses the concerns of some users about continuous paid membership services.

Regardless of the chosen business model, the essence of screenless fitness trackers' business lies in providing professional analysis services. Therefore, their marketing methods are different from traditional ones and are more targeted.

Polar builds trust based on its decades - long technological accumulation in the sports and health field; Huami collaborates with HYROX (an indoor fitness running event) to create momentum; WHOOP further strengthens its positioning as a "professional equipment" through endorsements from top athletes and in - depth product test content.

Of course, as the pioneer, WHOOP has gone the farthest in marketing. Since its establishment, WHOOP has established partnerships with top sports organizations such as the NFL Players Association, PGA, and LPGA golf tours. Its landmark achievement is successfully persuading MLB (Major League Baseball) to allow it to be the first health monitoring device worn during official games.

In addition, WHOOP has truly bound itself with athletes by turning them from users into investors.

In 2024, according to foreign media reports, football player Cristiano Ronaldo became WHOOP's official global ambassador and investor. Previously, WHOOP's investor list already included many top athletes, such as Michael Phelps, LeBron James, and Kevin Durant. They are also willing to promote their investment at various occasions.

In terms of the competitive landscape, WHOOP has an obvious first - mover advantage and high user stickiness. Currently, Huami's Helio and Polar's products cannot pose a significant threat. However, new users following the celebrities may choose products that are less accurate but more affordable.

Of course, even though WHOOP has many supporters, screenless fitness trackers cannot replace fully - functional smartwatches. However, WHOOP's success and the pursuit of Helio and Polar reveal a new way for current hardware startups to take off: abandon the "big and all - inclusive" approach, explore niche and in - depth segments, and make products more personalized. After all, there is no shortage of middle - class consumers willing to pay globally.