Fitbit opens its European HQ in Dublin as it hunts around the world for growth
The firm’s market value has slumped since it went public in the US last year.
FITNESS TRACKER SPECIALIST Fitbit has unveiled its new European base in Dublin as the device maker turns to international markets to deliver a new boost to sales.
The San Francisco firm has quietly been operating in Ireland since mid-2014, however today’s announcement marks it establishing a more-permanent footprint in Dublin.
Fitbit said the new office, on Baggot Street Lower, would house its ‘strategic business functions’ for the Europe, Middle East and Africa region, including senior management, sales, marketing and other roles.
It hopes to house 50 people there by the end of the year, with that number to grow to 100 by the end of 2017.
The company said it had delivered 150% year-on-year revenue growth in Europe in the second quarter of this year.
It also appointed a new managing director for the region, Des Power, who returns to do business in his home country for the first time in 30 years after previously working for companies including Philips and Harman International.
Fitbit CEO and co-founder James Park said he had seen Dublin become “a strategic hub for the technology industry as a centre for innovation and sourcing top talent in the region”.
Share slump
Since going public mid-last year, Fitbit’s market value has flopped about one-third compared to its IPO price despite the company delivering a series of seemingly solid numbers.
Its last quarterly revenue figures were up close to 50% on a year prior, although its profits fell as it funnelled significantly more money into sales and marketing, as well as research and product development.
For many, there has been the underlying belief that Fitbit’s fitness tracker business was waiting to be crushed by multi-purpose wearables, most notably the Apple Watch and cheaper substitutes.
But the company has answered with a series of new products, including the Blaze ‘fitness watch’ and two new fitness wristbands unveiled on Monday.
Meanwhile, its would-be killer, the Apple Watch, has so far proved an underwhelming performer for the iPhone maker. Market analysts IDC last month claimed sales of the device were down 55% since its launch, despite Apple discounting the product.
Fitbit also recently launched into the huge Chinese market, where it is hoping its premium devices will be seen as status symbols for the country’s ballooning middle class.
It also announced a deal with an Indian retailer earlier this month that would see its products placed in 1,000 extra stores across the world’s second most populous nation.
