Despite the popularity of fitness trackers and the spike in exercise wearables, rumors are swirling that Jawbone may be exiting the wearables technology competition.
The company recently announced that it has ceased the manufacturing of its UP fitness trackers and is selling off its entire inventory to a third-party seller. But CEO Hosain Rahman has reiterated his commitment to the wearables space since that news broke.
According to Fortune, the explanation for the sell-off was to allow for the company to focus on its health and wellness business. CEO Rahman released a statement that the company is more interested in the information that was collected from the wearables than it is in keeping the hardware business.
The company was responsible for the selling of three serious fitness wearables: the UP2, UP3 and UP4. Company decision makers chose to unload the inventory at a reduced rate after experiencing difficulties in selling the products. Jawbone UP fitness tracker reviews have always been varied, with many negative points brought to light. For example, the first model had a design that was not well received by consumers. The next model was also a poor design that could fall off too easily.
Jawbone jawboning the wearable exit news
But the company has since backed off on this plan, at least publicly. On the company’s blog, Rahman called the wearables exit talk “unequivocally false.” The company has also announced plans to roll out a new health-focused wearable, too.
It is still not clear whether Jawbone will continue manufacturing its UP fitness trackers in the future. Tech Insider has reported that Jawbone is not actually exiting the wearables business altogether, but it is simply selling off the inventory that still remains. After almost a year since Jawbone released its major fitness wearable, it has not been able to compete with the companies that have dominated this industry. Fitbit, Apple and Garmin are the key players in this market.
Jawbone is also searching for a buyer for its Bluetooth speaker business. It is trying to sell off all of its old stocks. Interestingly, the Jawbone speakers were well rated, getting high ratings by their users. However, the competition was just too heavy for them. The speakers were really awesome, but offered nothing that was extremely necessary and in high demand.
Perhaps the next move for Jawbone would be to arrange business deals with manufacturers of wearables, using their own apps or software.