Fitbit’s sales plummet as device’s popularity fades
San Francisco: Fitbit Inc.’s fourth-quarter revenue fell 19%, hurt by fading consumer demand for its once-popular wearable fitness trackers.
Chief executive officer James Park has been trying to prove that Fitbit is more than just a maker of trendy gadgets.
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The appeal of its wristbands has waned with consumers as the company faces competition from Apple Inc.’s higher-end watch and cheaper Chinese models, and last month Fitbit said it would eliminate 6% of its workforce.
Park is seeking to diversify the business, including expanding into the smartwatch category and pushing its corporate-wellness offerings.
His goal is to turn Fitbit into a digital-health company—one that relies less on consumers and focuses on selling to the health-care industry—but that strategy will take years to unfold. Bloomberg