Photo by Hamza Butt/Flickr
On Monday, the Shares of Fitbit dropped by as much as 15 percent during after-hours trading following a disappointing reveal of the company’s quarterly report.
Fitbit lost 2 cents for every share on revenue amounting to $571 million during the fourth quarter of 2017. Analysts who are polled by Thomson Reuters anticipated a break-even quarter for the wearable technology company, with revenue amounting $589 million.
Consumer hardware is considered as a notoriously difficult business. And the slow holiday season sales of Fitbit come as the new cellular smartwatch of Apple, and a tighter focus on health, have improved the wearable business of the tech giant.
In a statement, the co-founder and CEO of Fitbit, James Park, stated: “In 2018 we’ll focus on managing down expenses, continuing to expand in the smartwatch category and supporting our engaged global community on their health and fitness journeys.”