Fitbit (NYSE: FIT) reported third-quarter results last week, with mixed results translating into a mixed market reaction. Unit sales fell 31% to 3.6 million, but average selling prices (ASPs) jumped 14% to $108.31. The company's core U.S. business grew while the Europe, Middle East, and Africa segment slipped. Shares dipped briefly the day after, and currently still trade around $6.
It's not an exaggeration to say that Fitbit is betting its future on Ionic, its recently launched full-fledged smartwatch that can run third-party apps. Fitbit has scooped up several smaller start-ups in recent years in order to accelerate its smartwatch roadmap, while the broader trend in the wearables market toward multipurpose devices is undeniable. The shift in consumer preferences toward multipurpose devices is crushing demand for single-purpose fitness trackers, and Fitbit's declining unit volumes speak for themselves.
Data source: SEC filings. Chart by author.
Source: Fool.com