06 Feb Jawbone to end consumer sales, pivot to medical industry
Jawbone might pivot to the medical industry as it exits the consumer market, according to people close to the company. It has already sold all its assets for the Jambox speaker business, and has heavily reduced its customer support staff.
The private company is apparently talking to several investors about a new funding round, aimed at pushing Jawbone into the medical industry. It plans to sell a hardware device with a range of services, which will be sold (or licensed) to clinicals and health providers.
Jawbone hopes that the pivot from a low-margin consumers model to a high-margin B2B model will change the company’s fortunes.
It has been over two years since the company’s last major hardware update. In that time, its value has went from a reported $3 billion to less than $1 billion. Blackrock, a major investor, seemed to indicate that its stake in the company is worthless a few months ago.