SAN FRANCISCO — Fitbit, maker of fitness trackers and smartwatches, announced a plan to shift its manufacturing operations outside of China for effectively all of its trackers and smartwatches due to tariff concerns.
Starting in January 2020, the company expects those products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs implemented by the Trump Administration.
“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.”
Fitbit reported sales of 6.5 million trackers and watch devices during the first six months of 2019 and revenues of $585.4 million.