Jawbone quitting consumer wearable market
According to reports, Jawbone is quitting the consumer hardware market. The company is reportedly shifting its strategy to selling services and products to businesses in the health market directly.
- Fariha Khan
- February 6, 2017
Interestingly, it is not the first time that Jawbone has altered its strategy. Originally, it started as a headset company, shifting its focus to Bluetooth speakers and to affordable wearables with time. the company plans to sell high-margin health products mainly to clinicians and health providers. In addition, Jawbone plans to offer a set of software services as well
Jawbone is preparing to shift its business yet again — moving from a focus on low-margin fitness bands sold directly to consumers, to a high-margin business to business to consumer model: a health product and accompanying set of services sold primarily to clinicians and health providers working with patients.
Jawbone is seeking to raise more money from investors in order to get financing for its move. The company has been in discussions with its existing investors to get additional funds and it is in meeting with new investors and foreign investors also for the same purpose.
In the summer of 2016, we got reports that the company was to leave the wearables market, but later it refused that there was no such thing. However, now it shouldn’t come as something unexpected that Jawbone is finally making this move. Its products have long got less-than-stellar reviews. The firm faced tough time managing the relationship between health products and consumer needs in addition to struggling to keep solid margins.