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Update: Jawbone refutes claims that it plans to exit the fitness tracker market
Update (5/31): Jawbone has responded to the original report claiming that the company plans to sell off its remaining inventory and exit the fitness tracker market. As you’ll read in the official statement below, it looks like Jawbone has no plans to stop anytime soon.
Speculation that Jawbone is exiting the wearables business or going out of business altogether is false. This speculation appears to emanate from wrongful insinuations made in a blog post in which the reporter has since posted a “Correction.” Unfortunately, other media picked it up before the reporter posted a correction and spread this false information. Jawbone remains wholly committed to innovating in and building great wearables products. The company has never been more excited about its pipeline of technology and products and looks forward to sharing them when ready. We manage our inventory positions according to internal business processes, and strategic product lifecycle objectives. This situation is no different and we will continue to support all of our products in the marketplace.
Original post (5/27): According to Tech Insider, Jawbone has apparently stopped making their UP2, UP3, and UP4 fitness trackers altogether. After halting production, they then sold their remaining inventory to an unnamed company. Tech Insider says they are getting this information from an undisclosed source close to the matter, and that Jawbone is not responding to requests for comment.
At the moment, there’s no indication whether this is a temporary halt or a sign of something more final. The company has long struggled in the wearables market, an arena that is currently being fiercely fought over by Apple, Fitbit, and a slew of Android devices. This move does not mean that Jawbone is necessarily leaving the wearable game, and UP fitness trackers are still available for purchase. Just a few months ago, Jawbone CEO Hosain Rahman reported that the company had succeeded in raising $165 million in funding in January, and that they planned to use this to create clinical-grade fitness trackers.
Tech Insider reports that the same source also mentioned that the company has discontinued production of its Bluetooth speakers and is currently looking for a buyer to unload their inventory. The reasons for these yard sales seem to be that the company needs the extra revenue to stay in business.
Again, this is only a rumor so far, and we don’t have a solid word from Jawbone to back this up just yet. While we wait around for confirmation one way or the other, let us know what you think of these alleged recent moves by the company in the comments below!
Next: Our Jawbone UP3 review!