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Fitbit reports another lackluster quarter (FIT)
Fitbit shipped nearly 33% fewer devices in Q3 2017 than it did in the same quarter last year, according to the fitness tracker manufacturer’s earnings report
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Here are a few of the biggest takeaways from Fitbit’s earnings:
- Device sales remain down from prior years.
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- New products aren’t taking off.
- Products released in the last 12 months made up only 32% of revenue this past quarter. The company’s best-selling device is still the Charge 2, its mid-range fitness tracker that starts at $150 and was released in August 2016. This year, the company has focused on lower-end devices like the basic Flex 2 tracker and on its premium smart watch, the Ionic.
- It’s not clear where it can turn to offset declines in the US market.
- The US generated about 32% less revenue for Fitbit than it did in the
- last year, but the company’s revenue from other markets was nearly flat, up just $5 million YoY. The only slight improvement was in Europe, the Middle East, and Africa, but even that bright spot is marred by a quarter-to-quarter revenue drop of $20 million from Q2.
Dedicated fitness trackers will likely continue to decline. They don’t offer much to differentiate themselves from smart watches, and devices from companies like Fitbit are priced such that the jump up to a more feature-rich smart watch isn’t huge, leaving consumers with little reason to buy a fitness tracker.
Peter Newman, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on digital disruption in health care that:
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