Jawbone seeks exit from retail market to pursue medical businesses

Jawbone has been fairly quiet since the release of the UP3 in September 2015. (Source: Jawbone)
Jawbone has been fairly quiet since the release of the UP3 in September 2015. (Source: Jawbone)
The maker of the UP3 and other fitness wearables has been silent for a long time. Reports are now flying that Jawbone may be exiting the consumer market to focus on more lucrative clinics and medical businesses.

Jawbone has been in a tough spot for a while now. After building its business with a successful line of Bluetooth headsets and speakers, the company attempted to break into the burgeoning fitness tracker market with the UP. While the move garnered lots of attention, the market for fitness-focused wearables soon became a flooded canal with several different companies trying to fill a tiny niche. After the release of several lackluster products, it became clear that Jawbone couldn’t compete with juggernauts like Fitbit. Jawbone has slowly shed market share for years and faded into obscurity while still holding onto a thread.

Now, according to a report by TechCrunch, Jawbone may be looking to exit the consumer retail space and focus on businesses. This shift is driven by the pursuit of much larger profit margins found in sales to clinicians and healthcare professionals. Consumers present a tough market; manufacturers typically sell on razor thin margins to keep their products competitive. TechCrunch has also reported that Jawbone is pursuing several campaigns to raise funds and has collected over $950 million from investors such as Blackrock and JP Morgan. The company hasn’t been a very wise steward; it has reportedly burned through almost all of the funds with “very little to show in returns.”

Jawbone may find new life in a different market and under a different business model. The last consumer product released by Jawbone was the UP3, which debuted back in September of 2015. It’ll be interesting to see what’s in store for the future of the ever-changing company.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2017 02 > Jawbone seeks exit from retail market to pursue medical businesses
Sam Medley, 2017-02- 5 (Update: 2017-02- 5)
Sam Medley
Sam Medley - Review Editor - @samuel_medley
I've been a "tech-head" my entire life. After graduating college with a degree in Mathematics, I worked in finance and banking a few years before taking a job as a Systems Analyst for my local school district. I started working with Notebookcheck in October of 2016 and have enjoyed writing news articles and notebook reviews. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not hunched over an electronic device or writing code for a new database, I'm either outside with my family, playing a decade-old video game, or sitting behind a drum set.