Fitbit has been busy buying up companies such as smartwatch maker Pebble, mobile payments company Coin, and recently, Vector Watch, showing that its ambitions are bigger than just fitness-centric devices. The company doesn't have the infrastructure for apps right now, though we believe Fitbit has its sight set on an app store and wearables platform of its own.
Well, apart from these lofty goals, every company must compete in the wearables market, including Fitbit. The latest acquisitions and decline in sales have led to the company laying off 6% of its workforce (or 110 employees), to compensate. James Park, Fitbit's CEO, says that the company is aiming for the smartwatch market, that its latest acquisitions are in line with the company's long-term goals, though Park had nothing to say about the layoffs. The company had a rather disappointing Q4 2016, expecting to rake in $725-$750 million but only accumulating $572-$580 million.
What this does tell us is that every company has to pay the cost of success, and Fitbit is no different in that regard. Apparently, the company's current offerings are not enough due to their small profit margins whereas smartwatches command a price about 3 times that of fitness bands -- meaning Fitbit could find more financial security in the smartwatch sector.