Fitbit has been struggling to make profits in the past year, but they have made a strong comeback in this quarter. That’s because they have been able to increase smartwatch sales by a significant amount. According to the recent stats, around 50% of revenue generated by Fitbit comes from the sale of smartwatches. During the last year, they noticed how their net losses reduced to $2.1 million. However, they are now doing well and they are back on track with the smartwatch sales.
The release of Fitbit Versa is one of the biggest reasons behind the strong comeback of Fitbit. In addition to that, Fitbit released many other innovative wearable devices, including Fitbit Ace, Fitbit Charge 3 and Fitbit Aria 2. All of them contributed towards the profits that the brand is making as of now. These four devices alone have been able to generate 62% revenue to the brand. This fact clearly shows how popular their smartwatches are in the market.
With this increase in profits, Fitbit believes that they will be able to end fourth quarter of the year with a strong position. In fact, the brand believes that they will be able to increase the total revenue over $560 million by the end of fourth quarter. Even though the popularity and sales of fitness trackers have gone down, it has been captured by increasing sales of smartwatches.
The full year revenue of Fitbit is expected to surpass $1.5 billion. As per the current stats, Fitbit is on its way to achieve this figure. However, they need to make sure that fourth quarter ends up in a positive tone as well. In addition to that, Fitbit has the challenge of covering up the operational expenses as well. The operational expenses of the brand are estimated to be at $740 million.
During the recent past, Fitbit heavily invested on Research and Development. They wanted to come up with a unique and an innovative product. We will be able to see the results of their RnD efforts in the future as well. Therefore, Fitbit smartwatches and fitness trackers will even get better. In addition to that, we will be able to see Fitbit providing subscription based healthcare services to the people in order to track advanced health data stats.
Out of the products that Fitbit is selling in market as of now, Fitbit Versa is the most prominent and popular one. It was able to address all the issues that Fitbit Ionic had. This motivated Fitbit to come up with many great products to the market. It is also in a position to challenge some of the competitor brands such as Samsung, Garmin and Fossil as of now.
The popularity of Fitbit in United States is only behind Apple. However, Fitbit will be able to take things to the next level and receive impressive results by the end of this year.