Fitbit's Sales Plummet as Device's Popularity Fades

Fitbit Inc.’s fourth-quarter revenue fell 19 percent, hurt by fading consumer demand for its once-popular wearable fitness trackers.

Chief Executive Officer James Park has been trying to prove that Fitbit is more than just a maker of trendy gadgets. The appeal of its wristbands has waned with consumers as the company faces competition from Apple Inc.’s higher-end watch and cheaper Chinese models, and last month Fitbit said it would eliminate 6 percent of its workforce. Park is seeking to diversify the business, including expanding into the smartwatch category and pushing its corporate-wellness offerings. His goal is to turn Fitbit into a digital-health company -- one that relies less on consumers and focuses on selling to the health-care industry -- but that strategy will take years to unfold.