The company Fitbit continues to incur financial losses, which, according to analysts, may lead to a rapid withdrawal of the company from the market for wearable devices.
For the second quarter of 2017, Fitbit’s loss amounted to 58.2 million dollars (for the same period last year – only 6.3 million dollars). The revenue from sales decreased from 586 to 353 million dollars – that is, almost 40%.
The reason that Fitbit takes over positions is strong pressure from competitors. In the second quarter, the Chinese company Xiaomi became the leader in the portable electronics market – we wrote about it. Apparatus from China is not only more functional and attractive outside, but also cheaper. The average cost of the device from Fitbit is $ 100 – whereas the Xiaomi Mi Band 2 fitness bracelet can be bought for only 2,500 rubles ($ 40).
It should be noted that the “fall” of Fitbit in the second quarter was not a surprise: the company has long been considered unprofitable, the price of its shares since the New Year has fallen by 31%. Financial analysts about the sales of Fitbit give only pessimistic forecasts.