Wearable fitness device maker Fitbit Inc’s revenue forecast for the key-holiday shopping quarter fell well short of analysts’ estimates, hurt by soft demand and battery issues with one of its new wristbands.
Shares of the company, which also reported lower-than-expected quarterly revenue, plummeted more than 30 percent in extended trading on Wednesday and were set to hit record-low levels on Thursday.
Fitbit forecast revenue of $725 million to $750 million for the October-December quarter, the company’s fourth. That was well below analysts’ average estimate of $985.1 million, according to Thomson Reuters I/B/E/S.
FitBit have had production issues with the new Flex 2 band due to difficulties finding small enough batteries which won’t be resolved until the end of the year.
Also Fitbit is facing tough competition from the likes ofApple Inc, Samsung Electronics, Xiaomi and Garmin Ltd, whose devices have features that rival those in Fitbit’s devices.
I understand the competition issues but how can you not have enough batteries! Also, Fitbit won’t support Apple Health which is turning off users, including myself.
1 thought on “Fitbit shares sink on dismal results – details along with my opinions!”
I’ve just inherited a Fitbit Flex and am finding it an interesting experience. I’ve never had a fitness tracker before.
I’ve been looking into syncing options. I naively assumed that Fitbit would support Android and iOS health apps. It’s been a revelation. I can directly sync my sleep data with Samsung S-Health but needed a third party app to sync my steps. I haven’t yet found a way to sync with android Fit but I’m not sure there’s any point as it seems, to my mind, to lack features. Apple Health seems way ahead of Google in this area. Using an old iPhone 5S I can sync with Apple Health via a third party app but it took a while to track it down. It’s meant to sync in the background but it doesn’t. Oh well, manual sync is better than no sync.
It has made me realise what a mess the whole syncing thing is. Gavin, you’ve been at this fitness tracking longer than me. Is it getting better or worse?