Fitbit Diversifies its Supply Chain Outside of China
October 09 2019 - 9:05AM
Business Wire
Fitbit (NYSE: FIT) today announced that it has undertaken a plan
to shift its manufacturing operations outside of China for
effectively all of its trackers and smartwatches. As a result,
starting in January 2020, the company expects those products will
no longer be of Chinese origin and therefore not subject to Section
301 tariffs.
“In 2018, in response to the ongoing threat of tariffs, we began
exploring potential alternatives to China. As a result of these
explorations, we have made changes to our supply chain and
manufacturing operations and have additional changes underway,”
said Ron Kisling, CFO of Fitbit. “Based on these changes, we expect
that effectively all trackers and smartwatches starting in January
2020 will not be of Chinese origin.”
The company will provide more details of the financial
implications of these tariff mitigation efforts during its upcoming
third quarter earnings conference call.
About Fitbit, Inc. (NYSE: FIT)
Fitbit helps people lead healthier, more active lives by
empowering them with data, inspiration and guidance to reach their
goals. Fitbit designs products and experiences that track and
provide motivation for everyday health and fitness. Fitbit’s
diverse line of innovative and popular products include Fitbit
Charge 3™, Fitbit Inspire HR™, Fitbit Inspire™ and Fitbit Ace 2™
activity trackers, as well as the Fitbit Ionic™ and Fitbit Versa™
family of smartwatches, Fitbit Flyer™ wireless headphones, and
Fitbit Aria family of smart scales. Fitbit products are carried in
approximately 39,000 retail stores and in 100+ countries around the
globe. Powered by one of the world’s largest databases of activity,
exercise and sleep data and Fitbit’s leading health and fitness
social network, the Fitbit platform delivers personalized
experiences, insights and guidance through leading software and
interactive tools, including the Fitbit and Fitbit Coach apps, and
Fitbit OS for smartwatches. Fitbit’s paid subscription service,
Fitbit Premium, uses your unique data to deliver actionable
guidance and coaching in the Fitbit app to help you reach your
health and fitness goals. Fitbit Health Solutions develops health
and wellness solutions designed to help increase engagement,
improve health outcomes, and drive a positive return for employers,
health plans and health systems.
Fitbit and the Fitbit logo are trademarks or registered
trademarks of Fitbit, Inc. in the U.S. and other countries.
Additional Fitbit trademarks can be found
www.fitbit.com/legal/trademark-list. Third-party trademarks are the
property of their respective owners.
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Forward Looking Statement
This press release contains forward-looking statements, within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, that involve risks and uncertainties
including, among other things, statements regarding the impact of
tariffs on our business and financial performance; the country of
origin of our products; the applicability of tariffs to our
products; and our ability to make changes to our supply chain and
manufacturing processes and the timing of those changes. These
forward-looking statements are only predictions and may differ
materially from actual results due to a variety of factors,
including the effects of the highly competitive market in which we
operate, including competition from much larger technology
companies; any inability to successfully develop and introduce new
products, features, and services or enhance existing products and
services; product liability issues, security breaches or other
defects; and other factors discussed under the heading “Risk
Factors” in our most recent report on Form 10-Q filed with the
Securities and Exchange Commission. All forward-looking statements
contained herein are based on information available to us as of the
date hereof and we do not assume any obligation to update these
statements as a result of new information or future events.
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version on businesswire.com: https://www.businesswire.com/news/home/20191009005431/en/
Fitbit, Inc Jen Ralls, 415-941-0037 pr@fitbit.com
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