(RTTNews) - Shares of Chinese wearable technology company Huami Corp. (HMI) are down more than 7% today, subsequent to a 25% run up in the last 2 weeks. Huami designs and manufactures wearable products for partner Xiaomi, and also sells smart bands and watches under its own brand Amazfit. The stock rally came after the company unveiled an exciting product lineup at the Consumer Electronic Show 'CES 2020' in Las Vegas that navigates it well beyond its current product suite.
The novelty lies in Huami's uncanny business sense to bring affordability and additional features to tried-and-tested products sold by bigger rivals like Apple Inc. (AAPL), Fitbit, Inc. (FIT) and Garmin Ltd. (GRMN). This way, the company eliminates or greatly lowers the risk related to product uptake.
New Products Take the Amazfit PowerBuds for example. The wireless earbuds compete with Apple's popular Airpods. However, Huami adds a heart-rate sensor and a magnetic ear hook and a price that is at least $59 cheaper than Airpods. The heart-rate sensor issues real-time notifications when the user's heart-rate exceeds a pre-set warning value, while the magnetic ear-hook prevents the earbuds from falling out during intense workouts. Huami plans to rollout Amazfit PowerBuds in February for $99.9 vs. $159 for regular Apple AirPods and $249 for AirPods Pro.
Amazfit HomeStudio is the company's debut shot at the non-wearables market. An in-home fitness system, Amazfit HomeStudio is a high-end treadmill with an immersive 43-inch HD screen called the 'GLASS and surround-sound JBL speakers. A 3D Time-Of-Flight (TOF) Camera recognizes postures more accurately and corrects form for members to reduce injury and aid a better workout.
Fitness boutique chain STUDIO is providing the workout content, offering more than 1,000 classes across several verticals, such as sculpt, stretching, and yoga, in addition to treadmill workouts. This connected treadmill challenges the Peloton Tread, which sells for a price north of $4,295 and a content subscription fee of $34.99 per month. Huami is yet to announce the availability or pricing for the Amazfit HomeStudio, but has hinted that the price point will delight US customers.
The Amazfit ZenBuds with a launch date sometime this year - are smart, noise-blocking earbuds, specially designed to aid sleep. By reducing distracting noises and playing relaxing sounds, these earbuds help the user fall asleep. Meanwhile, the smart sleep monitoring function analyses sleep quality each night, helping the user form healthy sleeping habits.
For the first nine months of 2019, Huami posted a 52.9% rise in revenues to RMB 3,700.8 million or $517.8 million, from year-ago RMB 2,420.8 million, while adjusted net income attributable to the company rose more than 20% to $58.3 million or $0.91 per ADS. Each ADS represents 4 Class A ordinary shares.
For the fourth quarter, the company sees revenues of RMB 1.93 billion to RMB 1.95 billion, representing an increase of 57.6% to 59.2% from RMB1,224.6 million in the year-ago period. The forecast is also higher than Q3 revenues of RMB1,862.5 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.