Fitbit Inc. (NYSE:FIT) has been reported recently to have beaten the Wall Street by posting $341.6 million in terms of revenue. Comparatively, FitBit posted and reported fiscal result of 2017 on August 2 which stood at $353.3 million in revenues. According to business financial analysts, this figures represent a huge drop from the previous year (2016) earnings which stood at $586 million. From a close look of the outstanding shares it is clear that if analysis is done per share earnings, the Fitbit experienced a decline of $0.08 in the year 217. This was, however, better the foreseen drop of $0.15.
From the later analysis, it is now vivid that companies such as Xiaomi Dethroned Fitbit and there is a likely indication that Apple will be catching up soon if the trend continues in such a manner. On the other hand, the financial department within the company has revealed that the company sold 3.4 million units in the quarter of the year and this can be compared with 5.7million units sold last year.
Reasons behind the Sharp Decline of Fitbit
In essence, according to many business analysts including the chief financial officer of Fitbit, the company has tanked because of external competition. It should be noted that Xiaomi has occupied much of the market segments which were initially occupied by Fitbit. This has been seconded by the Strategy Analysis which operates globally. According to the Strategy Analysis, with the presence of Xiaomi, the company has been struggling and crippling effortlessly to establish its position as the leader in the segment as a leader. This has been impossible since customers are shifting from common watches to smart watches which are currently provided by Xiaomi.
Fitbit Other Rival Competitors
Apparently, Apple is also considered and has come out to become one of the stiff source of competition for Fitbit. According to Strategic Analysts, Apple exported more than 2.8 million Apple watches in the first quarter of 2017. This was later followed by the announcement by CEO Tim Cook that such a shipment was large enough and that it was led to financial and sales growth of 50% during such a short period. This has led to market capitalization of $1.2 billion.
Fitbit closed yesterday’s stock session at $5.52 after declining $0.17 or 2.99%.