Wearable electronics have become the next big thing in the world of innovation, following smartphones and tablets in terms of popularity. These devices help users to track vital health parameters, such as heart beats rate, burnt calories and more. further eliminating the need for frequent health checkups.
Enticed by these factors, customers are increasingly spending on affordable, high quality smart wearables. However, growing trade war between China and the U.S. has impacted businesses of players operating on both sides.
Fitbit Inc., a U.S. based fitness product manufacturer, has reportedly become a victim to this issue as it has recently announced that it will be moving its trackers and smartwatch manufacturing unit from China in a bid to protect the company from the region’s high tariff rates.
Reportedly, Fitbit had prior began searching for alternatives in 2018 after witnessing the bickering relationship between the U.S. and China which has severely affected global financial markets and supply lines.
The company has also filed a letter of opposition to President Donald Trump along with a group of companies, insisting him to reconsider his plan for increasing tariffs on Chinese goods. Fitbit suggests that changes in tariff rates would profit Chinese device makers operating in the American market.
Reportedly, several companies are considering moving outside China, with firms like GoPro shifting its camera production to Mexico, while Google has relocated its production of Nest thermostats and server hardware from China.
Incidentally, Fitbit had also made headlines when it hinted the possibility of being acquired by Google’s parent company Alphabet. Renowned brands like Samsung and Apple offering cutting-edge wearable devices has further hampered Fitbit sales.
However, the company has yet to reach to an agreement with potential buyers regarding its acquisition, while investment bank Qatalyst Partners has insisted Fitbit to explore its options.