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.