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Jawbone to exit consumer wearables market and focus on clinical services

By Cookie Monster - on 6 Feb 2017, 1:00am

Jawbone to exit consumer wearables market and focus on clinical services

The consumer wearables market has proven too much for Jawbone to continue its business there.

Sources told TechCrunch that Jawbone is shifting its focus on low-margin fitness bands for consumers to a high-margin business to business to consumer model in the medical industry. To fund this transition, Jawbone is said to in talks with its current and potential investors.

One of the sources shared that "consumer hardware is just too challenging, except for the very biggest companies". However, the growing health wearables sector offers a lot of opportunities and incredible margins.

Compared to smartphones, wearables have yet to prove themselves as an indispensable gadget in consumers' lifestyles. This has led to smaller players struggling to survive. In fact, we expect more consolidation in the wearables market. We've seen how Fitbit acquired startups Pebble and Vector, and even attempted to purchase Jawbone. It remains to be seen if a shift in business focus will help Jawbone survive. 

Source: TechCrunch via MacRumors 

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