Fitbit Inc (NYSE:FIT) has announced that it plans to launch a new smartwatch and that it will be ready for the market during the holidays.
The announcement highlights the company’s plan to make a comeback that will prove to investors that it is still in the game after lackluster performance in the past. Fitbit made the announcement on Wednesday, revealing that it has plans to launch a new smartwatch. It also plans to make it available in the market during the holiday season so that it can take advantage of holiday spending to boost sales. The company also hopes that its new offering will allow it to compete more effectively with its main rival, Apple Inc. (NASDAQ:AAPL).
“We are executing according to our transition plan and have increased confidence in achieving our full-year results. “Our smartwatch, which we believe will deliver the best health and fitness experience in the category, is on track for delivery ahead of the holiday season and will drive a strong second half of the year,” stated James Park, the CEO of Fitbit.
Fitbit is already reporting good news
Fitbit recently released its second quarter earnings report, revealing that it managed to $353.3 million in revenue, thus surpassing the $341.6 million revenue expectation. However, the firm still has a long way to go if it wants to compete more effectively. A recent analyst report about the company stated that Fitbit would have to employ new software for its wearables if it wants to achieve more growth.
Despite analyst claims, Fitbit is convinced that it is strategically positioned to compete with Apple in the smartwatch category especially with its upcoming offering. The company is yet to release more details about the watch and it is still not clear whether there will be new software. There have also been reports that the device has been facing some production issues. Despite this, Fitbit is confident that the new smartwatch will be ready for launch by the holiday season. More details including the features are expected to be revealed soon.
Fitbit stock closed the latest trading session on Wednesday at $5.07 after a 0.20 percent decline from the previous close.