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Jawbone intends to withdraw from the market of fitness trackers and to refocus the business on more profitable directions

06.02.2017 0 Comments

The company Jawbone, which is considered one of the pioneers of the market of fitness trackers, plans to stop production of the wearable device and go to more profitable products and services for medical institutions.

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Jawbone intends to withdraw from the market of fitness trackers and to refocus the business on more profitable directions

Last year, the Network appeared a lot of rumors that Jawbone is going to leave the consumer electronics market. It was said about the absence of goods in warehouses, debts to partners, and so on. But Jawbone has steadfastly denied all the rumors.

As it became known, the company is really planning to leave the consumer market, but to leave business it does not intend to. Is consumer electronics the company is going to focus on more profitable directions. First and foremost, it will be products and services focused on the medical field, and is intended for doctors and patients.

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We can assume that the Jawbone will produce about the same activity monitors with about the same functionality, but some features will be focused on the health sector. As you know, these devices are much more consumer counterparts.

Jawbone intends to withdraw from the market of fitness trackers and to refocus the business on more profitable directions

According to TechCrunch, Jawbone has managed to collect about $950 million from several large investors, including Andreessen Horowitz, Sequoia, Kleiner Perkins, JP Morgan, Mayfield and Khosla. However, most of the investment has already been spent without much hope for a refund, as it is difficult to obtain high profits through sales of wearable devices.

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It should be noted that problems are observed not only among the Jawbone. Analyst firm eMarketer in a recent report notes the drop in the market of wearable devices by 40%, which is reflected in the results of the manufacturer of fitness trackers Fitbit and purchased the company Pebble.


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