This week, global market leader in smart wearables, Fitbit, announced stronger-than-expected fourth-quarter earnings, benefiting from strong sales during the Christmas season, and Fitbit's sales for the full fiscal year 2015 doubled. In the fourth quarter of last year, the income was 712 million US dollars, almost doubled from the previous year. In the fourth quarter of last year, the sales of Fitbit equipment reached 8.2 million units, compared with 5.3 million units sold in the same period last year. In 2015, the annual sales volume was 21.4 million pieces, and in 2014 it was only 11 million pieces.
However, Fitbit expressed concern about the performance in the first quarter of this year. The company expects sales in the first quarter of this year to be only $420 million to $440 million, which is at least $50 million less than analysts expected. Earlier this year, Fitbit launched two new products: smart watch Blaze and smart bracelet Alta, production and marketing expenses or impact on the company's first quarter revenue.
Fitbit expressed concern about the performance of the first quarter of this year (network data map)
Regarding wearable devices, the most concerned issue is sticky. How many people will wear it after they have bought it, or they will still be in the drawer after a few days of wearing. Fibit has shared some interesting data about the user. These data will only be covered when the annual financial report is published.
According to Fitbit data, as of the end of 2015, the number of “active†users increased by 150% to 16.9 million users, and in 2014 there were only 6.7 million “active†users. Of the 18 million new users added in 2015, 72% of the users, or 12.96 million, remain "active."
However, only 58% of the total number of registered users of Fitbit as of the end of 2015, that is, about 16.9 million users remain “activeâ€, which means that the newly registered users are relatively active.
It's worth noting that the standard for Fitbit's definition of "active" users is very low: as long as you subscribe to Fitbit's service, you can bind a wearable device, have 100 steps per day, or have a weight loss plan for the past three months. As an "active user."
Price wars stimulate innovation
2015 is a year of the wearable market. Apple also launched the revolutionary Apple Watch. But it is precisely because there are so many competitors that it can promote continuous innovation. Especially in China, the price war of wearable products opened in 2015, and the average price of a single product has dropped to 200 yuan. The company headed by millet has a large market share through price advantage.
According to GfK, a German consultancy, sales of China's wearables market reached 24 million units in 2015, of which smart bracelets grew by 376% year-on-year to 12 million units, and smart watches grew by 577% year-on-year to 10 million units.
GfK expects that the wearable market will continue to expand in 2016, with an estimated total market of 32 million units, which is related to the guidance and education of consumers influential brands including Apple and Huawei entering the wearable market.
Wearable startup Shanghai Hanlin Technology CEO Chen Yuemeng told CBN: "The difference in capital strength is destined for start-ups to put innovation at the top of the strategy, followed by hardware. And companies like Xiaomi have a lot of money behind them. Users are their most concerned, followed by hardware, and finally will consider innovation." Hanlin Technology launched the new Cling smart watch display last year using waterproof technology, also equipped with UV detection; in March this year, Cling will also Introducing new indoor air quality and blood alcohol detection technology, the detection of organic volatile compounds (VOC) sensors is second to none in the country, and the automobile manufacturing giant Audi also showed great interest in this function, hoping to cooperate with Cling's wearable devices. Monitor the air quality inside the car and realize the self-monitoring and management of the driver to reduce the incidence of drunk driving.
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