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The reductions were announced amid disappointing quarterly and annual revenue results, as well as lower-than-expected revenue forecasts for 2017. Theres a concern theyre reaching market saturation in the U.S., said Nick McKay , an analyst at Wedbush . There is also the perception that technological innovation within their devices, the pace of that innovation, is slowing. Photo: CHARLIE MAHONEY, NYT Better Buy: Fitbit Inc. vs. Apple More concerning, McKay said, is that Fitbits 2017 revenue forecast is well below what analysts expected. The company announced 2017 revenue guidance of $1.5 billion to $1.7 billion less than the $2.4 billion analysts projected. If you have a business going from roughly $2.2 billion in revenue in 2016, going all the way down to $1.5 to 1.7 billion on the back of demand weakness at the end of the fourth quarter of 2016, theyre in pretty tricky spot right now, McKay said. Park attributed the lower-than-expected financial results to less demand for Fitbit products during the holidays. While we have experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during Black Friday, we have continued to grow rapidly in select markets, Park said. To address this reduction in growth and what we believe is a temporary slowdown and transition period, we are taking clear steps to reduce operating costs. A Fitbit spokeswoman declined to provide additional comment beyond the earnings announcement. The company is scheduled to hold a conference call for investors on Feb.
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