Fitbit just launched a new version of its Versa smartwatch, and it could give the Apple Watch some serious competition

Being a health company at its core, Fitbit has outpaced Apple in the past when it comes to how comprehensive its health-oriented features are. Apple Watches, for example, still can't track sleep natively but instead require users to download third-party apps.

Not only has Fitbit offered sleep tracking for years, but it's also gone beyond that by monitoring whether users are in light, deep, or REM sleep. Apple only added the ability to measure elevation to the Apple Watch Series 3 in 2017, whereas Fitbit devices had been able to track that metric far earlier.

Apple has since added new features that have helped it keep up with Fitbit, and in some cases even surpass it. The company announced that breathing exercises were coming to the Apple Watch back in June 2016 before Fitbit revealed that a similar feature would be available for its own devices just a few months later, for instance.

The Apple Watch Series 4 can provide electrocardiogram readings and can also detect when a user has taken a hard fall, while Fitbit cannot. Apple's new software update coming this fall will enable Apple Watches to monitor a wearer's activity over time, helping users make more sense of their statistics and identify health and fitness trends.

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While Apple may have been behind Fitbit in certain aspects when it came to its health tracking capabilities, it usually has more to offer as a smartwatch. For example, in the past it has always had a larger and more robust app store, a sharper screen, a more sophisticated operating system, and features like Siri support and Apple Pay compatibility by default.

With the Versa 2, Fitbit is looking to change that in a big way by adding Alexa, partnering with Spotify, upgrading the watch's screen from LCD to AMOLED, and adding mobile payments to the standard version of the watch. Such additions could help Fitbit close the gap in features and functionality when compared to its much pricier competitor.

Fitbit's new smartwatch is launching just as Apple could be preparing to debut a new version of the Apple Watch this fall. If it does, the new watch will likely be very similar to the current version, according to Bloomberg, and may include cosmetic upgrades to the finishes shoppers have to choose from.

All told, the Versa 2 is a sign that Fitbit will continue to close the gap in features between its smartwatches and Apple's, and it'll continue to do so while pricing its watches aggressively. At $200, the Versa 2 is half the price of the $400 Apple Watch Series 4.