Fitness Tracker Jawbone Company Goes Under After a Long Struggle
The Jawbone company, which made Bluetooth speakers and fitness trackers, is finally liquidating its assets after a long struggle. They stopped selling products in September 2016 and sold their inventory to a third-party reseller to get some much-needed money. Employees were leaving the company, which also cut ties with the third-party customer service agency they had contracted until then. And now in July 2017, they began the liquidation process.
Hosain Rahman, the co-founder of Jawbone moved on to another new company he founded, Jawbone Health Hub, which will supposedly continue its operations and will keep servicing any existing Jawbone products. Many of the original employees who were still at Jawbone went to this new company, which will focus on health-related products and tracking.
Thus ends a long struggle, which began in 2011, when the previously audio-related company turned to Bluetooth speakers and fitness trackers which were becoming popular at that time. However, the latter turned out to be a bad decision - FitBit’s success in the same industry, multiple Jawbone product failures, many issues, legal lawsuit battles against FitBit and decreasing sales all lead to financial struggles. The UP health tracker, launched in 2011, was a huge failure. The company had to issue replacements for the failed devices or refund their prices - the former didn’t work out, as too many of them were faulty. Amazon reviews for the Jawbone UP were horrible - more than 25% of buyers gave the wristband 1 star out of 5.
It is no wonder that in this fierce market, Jawbone’s failure to provide a properly working product led to the company’s eventual liquidation after a long struggle.