IoT Ecosystem Blog

Q1 '16: Fitbit: Leadership Maintained, but Profitability Shrinks

by Steven Waltzer | May 20, 2016

In Q1 2016 Fitbit shipments and revenues continued to grow substantially, especially internationally, retaining their first position in the global fitness band market by both volume and value. Operating income, on the other hand, shrunk this quarter due to front-loaded R&D and Marketing expense for new product launches. Despite early negative market reception, the Fitbit Blaze and Fitbit Alta were new models that surpassed sales expectations comprising a combined 47% of Fitbit revenues for the quarter. Fitbit announced accelerating international expansion in Q1 2016 with their strongest growth in the Asia Pacific region, where revenues jumped up 142% YoY. Strategy Analytics believes Fitbit should continue its momentum by leveraging a strong marketing and branding push, and remaining focused abroad for more aggressive growth opportunities. 

Clients of Strategy Analytics' Wearables research service can download the full report here.

Fitbit Alta (left) and Fitbit Blaze (right)

Further analysis of the fitness band and overall wearable market can be found for clients within Strategy Analytics' Wearables research service.
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