Fitbit went out in public in June 2015. They believed that they are going to defeat all other technical products and they did get success once but maybe they misunderstood it and did 6 big mistakes in market.
1. Share loss
Fitbit use to be the largest wearable makers in the world and they have more shares in stock market rather than Apple, Xiaomi, Huawei and Garmin. But between third quarter of 2016 and 2017, its global share dropped from 21.9% to 13.7% according to IDC. While Apple, Xiaomi, Huawei and Garmin were having 10.3%, 13.7%, 6% and 4.9%. There lost doesn’t stop, as years pass they lost market shares.
2. Quality issues
In 2014, Fitbit Force was said to cause irritation and rashes. The same year charge and surge users also complained about same issue.
In 2017, a user sued Fitbit after Flex 2 exploded, but company covers that matter by saying it was caused due to external forces.
Last year, ionic smartwatch, was claimed to be having production delays, waterproofing and GPS problem.
3. Lack of inspiration
Fitbit future depends on grounding Apple watch 3. But it wasn’t successful because apple watch 3 was having more features than Fitbit like longer battery life of four days and $300 tag low price. So Fitbit didn’t loss there battle against Apple watch 3.
4. Failure in new invention
When hardware companies face such failures they explore new ideas to upsell there market so does Fitbit but result wasn’t much favorable.
Fitbit launched Fitstar but it wasn’t much successful so last October, they upgraded it into Fitbit into “Fitbit Coach” a $40 per year service. It provides many new facilities but they admitted that its revenue remained “immaterial” to its financial result.
5. “Corporate wellness” wasn’t much successful
Once Fitbit attempted to sell in enterprise market with “Corporate wellness”. This cooperation was none other than a package for other companies which they took for their employers with goal of cutting healthcare costs and ordered bulk of orders.
Fitbit then claimed that there this partnership wasn’t much a boost.
6. Drop of revenue
Fitbit revenue decelerated and dropped below the line. This year, According to wall street Fitbit’s revenue is expected to fall 25%, yet it going to be remain in the red line.