Fitbit to shift manufacturing operations out of China in 2020
The wearable device maker is diversifying its manufacturing operations to avoid Chinese tariffs
Fitbit intends to move its manufacturing operations outside of China, the company has stated.
From January 2020, the company’s fitness trackers and smartwatches will no longer be of Chinese origin and therefore won’t be subject to Section 301 tariffs.
Ron Kisling, chief executive of Fitbit, said that last year in response to the threat of tariffs the company began “exploring potential alternatives” to China and as a result of these explorations made changes to its supply chain and manufacturing operations.
Fitbit (NYSE: FIT) said it will provide more details of the financial implications of its tariff mitigation efforts during its third quarter earnings conference call.
As a result of this news, shares of Fitbit briefly rose 2 per cent last week.
Fitbit products are carried in approximately 39,000 retail stores and in 100+ countries around the globe.
Earlier this year, Fitbit launched in Peru, with its full line of health and fitness smartwatches, trackers, smart scale and the free Fitbit app.
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