Q2 '16 Fitbit: Fresh Products and Emphasis on R&D Help the #1 Wearables Vendor Notch a Robust Quarter

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Report Summary:

Fitbit in Q2 2016 shipped 5.5 million fitness bands to easily keep the #1 share position within the category and indeed all wearables. Yet while new shipments of fitness bands were up +56% YoY, the company barely eked out an operating margin. Still, the second quarter’s results are widely seen as positive, reflecting sustained R&D investment that has allowed Fitbit to stay on top of the highly dynamic wearables game in terms of both volume and value. In a rapidly evolving market, Fitbit has proven an ability to outpace top-tier rivals such as Apple and Xiaomi that have been slower to launch new designs. Our series of recurring quarterly vendor insights now covers specific wearables OEMs individually and can be used by stakeholders to track recent developments and strategies of major wearables players.

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