• General
  • October 10, 2019
  • 6 minutes read

Fitbit To Shift Manufacturing Outside China

Fitbit CEO James Park Photo by Kimberly White/Getty Images for TechCrunch Fitbit has announced that it’s embarked on a plan to…

Fitbit CEO James Park

Photo by Kimberly White/Getty Images for TechCrunch


Fitbit has announced that it’s embarked on a plan to move manufacturing operations for all of its trackers and smartwatches outside China, citing tariffs, from a U.S.-China trade war, as the reason. Fitbit expects the plan to go into effect beginning January 2020. “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,” Fitbit CFO Ron Kisling said in a statement. Fitbit says it’ll provide more details on its manufacturing shift at its upcoming Q3 earnings conference call.

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Fitbit didn’t disclose the region it plans to shift manufacturing to. In June, the famed smartwatch maker was part of a cohort of companies that filed letters of opposition to the Trump Administration’s plan to impose more tariffs on Chinese goods coming into the U.S. Fitbit argued that the move would result in a competitive advantage for Chinese hardware companies in the U.S. market. Companies like Fitbit, alongside the likes of Apple, Amazon and Google manufacture their hardware in China, and would be affected by any increase in U.S. tariffs. The aforementioned companies previously tried to secure exemptions from a 10% tariff imposed on Chinese-originated goods beginning on the 1st of September but weren’t able to do so.

Just like Fitbit, some other U.S. companies have hatched plans to move significant manufacturing operations outside China. One example; In May, GoPro officially moved production of all its U.S.-bound cameras from China to Mexico. Apple, a company with major manufacturing operations in China, is also said to have asked its contract manufacturers to evaluate moving final assembly of some of its products outside China. Another example; Earlier this year, Bloomberg reported Google had moved production of its Nest thermostats and server hardware outside China.

Fitbit Co-Founder & CTO Eric Friedman

Photo by Kimberly White/Getty Images for TechCrunch


Fitbit’s announcement makes it the latest company making a move to protect itself from tariffs, which would lead to higher cost of securing products, and likely higher costs for their buyers. It’s plausible that more companies will announce similar moves in future time.

In other Fitbit news, the company is said to be exploring putting itself up for sale after a bleak performance on the stock market since going public.



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