Apple and Fitbit numbers show smartwatches turning into a winner-take-all market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Fitbit plunged to a record low after hours on Wednesday because of disappointing smartwatch sales, a day after Apple exceeded expectations.

It's a tale of two companies told over the course of 24 hours. Apple is the icon of the consumer electronics business, having parlayed its dominance in smartphones into a market-leading position in watches by keeping people in its ecosystem. Fitbit is the challenger that innovated in fitness tracking and built a solid business before getting steamrolled by the industry superpower as it moved into more advanced smartwatches.

In its effort to stay competitive, Fitbit has been slashing prices, which resulted in a shrinking of its gross margin, or the profit left after subtracting costs of goods sold, to 34.5% from 39.8%., a lightweight smartwatch that it introduced earlier this year, for its disappointing numbers and lowered the midpoint of its revenue guidance for 2019 to $1.46 billion from $1.56 billion.

Park is trying to reduce his company's reliance on device sales and focus more on premium services, which will create a "longer lasting relationship with users while changing perception of products and services from a nice to have to need to have," the CEO said on Wednesday's earnings call.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Apple Watch Siri: Hi, we noticed the iValve in your iHeart was modified or removed by a non-Apple approved iDoctor. We are temporarily bricking your iValve for violation of our TOS. Please open an iTicket on your iWatch to appeal the process or order a new iValve. Thank you.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Apple woos investors with China gain, market value nears $1 trillionShares of Apple Inc rose 4.2% on Wednesday, after the company calmed Wall Street... They need to start paying higher American taxes as they are now a Chinese company.
Source: Reuters - 🏆 2. / 97 Read more »

Stocks making the biggest moves after hours: Fitbit, Qualcomm, Twilio and moreSee which stocks are posting big moves after the bell on July 31.
Source: CNBC - 🏆 12. / 72 Read more »

Wall Street set to open lower as focus shifts to Fed meeting, Apple earningsWall Street's main indexes were set to open lower on Tuesday, as worries ab... Meh.
Source: Reuters - 🏆 2. / 97 Read more »