Which explains all those smartwatch brand acquisitions
Fitbit, the global leader in fitness trackers, is creating a proper smartwatch.
In the company’s fourth quarter financial statement to investors (released Jan. 30), Fitbit CEO James Park said, “We believe the evolving wearables market continues to present growth opportunities for us that we will capitalize on by investing in our core product offerings, while expanding into the smartwatch category to diversify revenue and capture share of the over $10 billion global smartwatch market. We believe we are uniquely positioned to succeed in delivering what consumers are looking for in a smartwatch: stylish, well-designed devices that combine the right general purpose functionality with a focus on health and fitness.”
So now we know definitively that the company has been gobbling up smartwatch brands to build its bench in the category: “With the recent acquisition of assets from Pebble, Vector Watch, and Coin,” Park added, “we are taking action to position the company for long-term success.”
The CEO announced sales of 6.5 million trackers in Q4 of 2016, with a total revenue of about $570 million. He further shared that the company would be laying off 6 percent of its workforce this year—approximately 110 employees.
Under “risks and uncertainties” in the release, Fitbit cites “our ability to deliver a smartwatch.”
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