Xiaomi launches Mi Band - Serious Fitbit competitor for $16 Sing

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I have been saying for a while that the #fitbit CEO must wake in a cold sweat at 4am every day about his business.
Whilst they are kicking ass with market share today I see trouble ahead, it is after all only a #bluetooth connected #pedometer with some nice software. (I am an owner and I like it but it is what it is)

With a bill of materials and COGS of under $20 Fitbit has been making hay while the Sun shines selling at $70 (or $120 retail in Australia)

I have recently costed out a prototype with some common components so I know exactly what’s in one.

So to give you an idea of the component costs

3 axis #accelerometer (the main active component) >$1
Processor + Bluetooth ($1-2)
Battery <50c
Assorted power chips/LEDs ~ $2

Obviously you have to assemble and fabricate and give the retailer a margin but I still think their gross margins must be healthy.

Until now.

#xiaomi has just launched the Mi Band at $16s with 4 times the battery life

Watchout Fitbit.

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Mike88

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Mike Nicholls Australian Inventor + Entrepreneur working with a small team of engineers building prototypes from Inventions including two medical devices. Publishes Startup88.com and has assessed/reviewed +500 inventions and +200 startups in the last 3 years. Mentors Sydney Startups via Incubate and other incubators and helps members of the Australian Startup Community via the Startup88.com website with free publicity and advertising. Experience in numerous industries including Digital Publishing, Cloud Computing, Apps, Hardware, Aviation, Real Estate & Finance and Health/Medical Devices.

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Mike88