Half of the APAC revenue comes from Australia, so China revenue contribution is small in comparison to the opportunity, and investors are not even sure how small it really is.

In the second quarter, despite growing at 46% year-over-year, the region totaled a mere $21 million, or 5.9% of total revenue. The most recent mention of China on an earnings call was in the final quarter of 2016 when James Park, Fitbit's CEO, said '.we have yet to gain much traction in large markets like China.'įitbit includes its revenue for the Chinese market in its Asia Pacific (APAC) region.

Fitbit's China problemįitbit management doesn't mention China on its earnings calls or in its financial filings unless an analyst asks a question about the region. Quite simply, adidas has been successful in China, and Fitbit hasn't. While that seems like a no-brainer, the bigger reason behind Fitbit's desire to partner with adidas is related to China.

Fitness tracker company Fitbit ( FIT) announced a partnership with adidas ( ADDYY -0.44%) as part of its Ionic smartwatch launch in September, promising a device and training programs next year that enhance Fitbit's personalized coaching software with adidas' expertise.

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