samkun company report
TRANSCRIPT
Samkit Shah
Problem
▪ Tracking Daily Activity is Difficult
▪ E.g. Step Count, Meals, Sleep Cycle
Solution
Ø Wireless Fitness Tracker
Ø Analysis Website
Ø Or Mobile App
Solution
Ø Wireless Fitness Tracker
Ø Analysis Website
Ø Or Mobile App
Profitable
2016 2015 2014
Total Revenue 1,857,998 745,433,000 271,087,000
Gross Profit 901,063,000 357,657,000 60,251,000
Operating Income 348,198,000 157,929,000 -8,954,000
Visualizing Profitability
Business Model
Ø Wearables cost $60-200
Ø Personalized trainer $50/yr
Industry: Wearables
Ø Sales up 18.4% 2016
Ø Shaker
History
Founded in 2007
Runner up at TechCrunch50
2008
Privacy concerns2011
Fitbit Premium+ Fitbit Flex
(First wrist wearable)2013
First Smart Watch + Pebble acquisition
2016
Hot Product & Secret Sauce
Ø Fitbit Blaze
Ø Fitbit Premium $50/yr
Ø Fitness Expertise
CompetitionActivityTracking
Heartrate
SleepMonitor
Speaker&Microphone NFS BatteryLife
Musicstorage
PersonalizedTrainer
FitbitZip ✓ ✓ <=6monthsFitbitBlaze ✓ ✓ ✓ <=5days ✓*AppleWatch ✓ ✓ ✓ ✓ <=18hours <=2GBSamsungGearS3 ✓ ✓ ✓ ✓ ✓ <=4days <=4GB (*)
Market ShareCompanies 2016Q3 2016Q1 2015Q1
Fitbit 23 24.5 32.6Apple 4.9 7.5 0Xiaomi 16.5 15.4 7Samsung 4.5 3.6 5.8Garmin 5.7 4.6 6.1Others 45.4 44.4 48.5
Market Share 2015 Q1
32.6
075.8
6.1
48.5
Fibit Apple Xiaomi Samsung Garmin Others
Market Share 2016 Q3
23
4.9
16.5
4.55.7
45.4
Fibit Apple Xiaomi Samsung Garmin Others
Prediction
Ø Not fully integrated
Ø No Barriers
Ø Lack of Resources
Ø Survival: Buyout/Merger
ReferencesØ https://www.wareable.com/fitbit/youre-fitbit-and-you-know-it-how-a-wooden-box-became-
a-dollar-4-billion-company
Ø https://www.fitbit.com/
Ø https://finance.yahoo.com/quote/FIT/financials?p=FIT
Ø https://www.cnet.com/news/apple-watch-series-2-vs-samsung-gear-s3-vs-fitbit-vs-android-wear-vs-garmin-vs-pebble/
Ø https://www.idc.com/getdoc.jsp?containerId=prUS41996116
Ø http://www.idc.com/getdoc.jsp?containerId=prUS41284516
Ø http://www.gartner.com/newsroom/id/3198018
Ø https://en.wikipedia.org/wiki/Fitbit