Fitbit 2018 plans smart move towards smartwatches. After revealing its latest earnings, Fitbit appears to be a company that’s running out of cash as it tries to keep up with the wearable competition.
However, company does have a plan to make things better and regain its position. A plan includes a new business model and a move towards smartwatches in 2018.
Fitbit said its designed smartwatch would have mass appeal and that though its lineup at the start of the year will lean more towards fitness trackers than smartwatches.
Its focus will move in line with consumer interests as the year comes to a close. Fitbit knows it can’t lean on activity trackers forever and hence going to shake things up in 2018.
This means that Fitbit is predicting that its revenue will continue to drop in the first quarter of the year as consumers shift towards smartwatches.
But company CEO James Park said he predicts the lines between smartwatches and fitness trackers will continue to blur.
This will help the company’s new smartwatch to release into the market. The company is also planning to move its business model away from seasonal new product launches.
The company is planning to move towards subscription services which tend to yield a more sustained and reliable cash flow.
While moving towards smartwatches and long term services is a sensible approach, in many ways it’s Fitbit’s only option if it wants to continue to operate.
In spite of cost cutting the company still lost money this year. The Apple Watch appeared to florish over the holiday season.
The tastes of consumer are shifting. it will remains to see whether Fitbit will be able to change fast enough to keep up.