Fitness watches and sportswear feel like a very saturated market. With a similar products being launched by the rival companies. You may think that all companies involved will be used to facing losses because of the tough competition out there. Garmin is one such company that has not fallen into this tap. In fact, Garmin reported a 10% increase in revenue.
Where companies like Fitbit Inc. have suffered losses over the fourth quarter of 2016 sales, Garmin generated a total revenue of $3,019 million over the 2016 fiscal year. A whopping 7% increase from last year. This surely makes it a force to reckon with.
According to their reports, their gross margins have improved from 52.9% to 54.7% since last year. Despite of some loss in their auto unit, Garmin’s outdoor, fitness, marine and aviation units collectively has contributed 71% of the total yearly revenue, that 21% greater than last year.
Garmin is a Switzerland based, American multinational company famous for their GPS equipped and incredibly diversified smart watches. With this recent growth, this company has established itself as a rising star amongst its other competitors like Apple, Samsung and LG who also have similar features.
Garmin’s has sold over 16.8 million units in 2016 and over 173 million since its inception, making it a market favorite. Garmin’s have proved time and again that customizability and diversity in fitness products is a great idea. They have also introduced Fenix 5 with 3 new watch designs with a diverse range of wrist sizes and style options.
In Cliff Pemble’s words, “Entering 2017, we see additional growth opportunities ahead and we are well positioned to seize these opportunities with a strong lineup of great products.” Pemble is the CEO and president of Garmin’s Limited.