FitBit, a company that makes fitness-tracking bracelets, is one of the hottest consumer companies right now.
The company recently boosted the size of its initial public offering. President Barack Obama, actor Ryan Reynolds, and singer Britney Spears have all been spotted wearing its bracelets. And designer Tory Burch did a collaboration to make the fitness bands look more chic.
But while FitBit is a hot brand right now, it could very well become the next Blackberry, according to Leslie Picker at Bloomberg News.
“Like FitBit, BlackBerry was the established market leader with a ubiquitous gadget and a lower-priced alternative to Apple’s shiny new iPhone,” Picker writes.
FITBIT, starting in 2013 into the outbreak growth, rapid growth of income in 2013 from 2013 to 2014 in 745 million, the gross profit margin rose from 22% in 2013 to 48% in 2014, Q1 this year has reached 50%.
129.4% growth in the first three months of this year, according to IDC, FITBIT, market share of 34.3%, and although growth is still, but market share compared to the same period last year dropped 10%, and was ranked 3-5 vendors, growth is more than 100%, but a drop in market share. The main reason is millet as catfish industry, through the low price strategy, within a year from scratch, the market share of 24.6%, ranked second. But if the calculated on production, millet bracelet 79 yuan price, Q1 sales only $35 million. The FITBIT quarter revenue of $336 million and is almost ten times the millet. According to shipments, FITBIT item prices an average of $86. IDC is global shipments, but from the United States market FITBIT first quarter of this year by sales market share of 85%, 70% in the past year, from 59% in 2013. We know, of course, if you count the shipment of the second quarter to Apple Watch, it will obviously larger changes.
From the data in the first quarter of this year, three times the FITBIT income growth in the last year, $336 million (108 million) last year, paid 9.5 million active users (6.7 million 2014). In the first quarter of this year net profit of 47.99 million, compared to the same period last year, 8.87 million (2014) 2014 annual growth is amazing. In the first quarter EPS $0.26 per share, in the same period last year 0.04 ($0.7) for all of last year.
FitBit already faces competition through the Apple Watch, which also tracks fitness.
FitBits start at around $80, while the Apple Watch costs a minimum of $725.
The American college of sports industry is a big market, FITBIT forecast in 2014 the national sports management market more than $2014 (gym, membership fees, weight management). 25% of U.S. smartphone users in the cell phone use fitness class APP.
Wearable devices are all electronic products in the fastest growing, shipments three times higher than in 2013, 2014, 21 million only. IDC expects shipments of 114 million to 2018, only $33.7 billion the size of the market. In 2014, FITBIT calculated on product market share of 68% in the United States.