- Fitbit released second-quarter earnings with decline in sales of its Versa Lite smartwatch
- Shares declined more than 25% over year-on-year
Fitbit, Inc. which is engaged in manufacturing of wireless-enabled and wearable fitness devices. The company reported its earnings for the second quarter of 2019. The revenue of the company from its smartwatch business decreased on year-over-year. The revenue from its smartwatch revenue cut down by 27 percent. In addition, Apple Inc. which is engaged in designing, manufacturing, and marketing of smart watches. Apple Inc. is a strong competitor of Fitbit. In recent time, Apple Inc. has reported robust growth for wearables business of the company in the fiscal 3rd quarter of 2019. The company experts think that its fitness tracker revenue decreased due to lower cost. The average selling price decline by 19 percent compared to the year-ago quarter. The company reported an accustomed loss per share of 15 percent. Better than analyst expectations of 18 percent loss per share.
It seems very hard to see negative impact of Apple Watch on Fitbit smart watches. While the Fitbit Versa Lite are available in market at approximately US$ 160. Apple Inc. reported that its wearables, home, and accessories business segment generated over US$ 5.53 billion. While that also includes things such as Beats, Home Pod, and Air Pods. These segment registered a growth over 50 percent. Fitbit reported adjusted loss per share of US$ 0.14. The revenue of US$ 314 Mn. The analysts expected a loss of US$ 0.18 per share and US$ 312 in revenue.
In its earnings release in Q3, Fitbit sales decreased as compared to what was expected from Fitbit Versa Lite smartwatch. As reported in March 2019, the Versa Lite takes on the Apple Watch with a US$ 160 price tag. The things such as 4-day battery life and sleep tracking. Smartwatch revenue decline by over 27 percent over year-on-year. The company expect average selling price to improve from Q2. The company announced a plans to introduced new product with innovation and technological advancement.