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Fitbit can leave the wearable device market

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%.

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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).

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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.

What do you think?

Team Geek Axe

Written by Team Geek Axe

Excellently written articles by Geek Axe staff, who are specialized in every tech essence of this website.

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