- •Last year Fitbit CFO said they have north of 80% of market share. That's not a good thing so early in product and customer lifecycle.
- •After dismal first quarter their CEO reiterated guidance for the full year. As it turns out it is not going to be the case even with the busiest Holidays quarter.
- •Their year over year same quarter sales increased 21% from 11% increase in units and 11% increase in average selling price. Just 11% increase in units says the ceiling is near and dropping.
- •They highlight average selling price increase of 11% from last year but fail to note drop of 7% from last quarter. This should be a huge concern because they just introduced higher priced device.
- •Fitbit likes to say Apple is not their completion, that is not true. If customer won't buy your product if they bought Apple Watch then it is your competition.
- •Finally if Apple is not your competition you should worry because Apple only plays in really large markets, skimming the top 3% with premium products at higher margins.