the song of the Swan ?

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The times are hard for the specialist of smart health connected objects. After having decided to sell its Jambox branch, Jawbone has just stopped the production of its UP sensors, and sold the inventory to a third party. She is now focusing on a product advertised as revolutionary. True awakening or swan song?

Less is more … or not!

Jawbone was talked about all weekend in the US media. The sequence of (bad) news does not predict the best for society. Faced with disappointing sales, the company is betting to reduce its range to only a few products. The first victims announced are Bluetooth speakers, for which Jawbone pitch potential buyers. Directly after these revelations, it is the site TechInsider, later joined by other sources, which teaches us that the company is going purely and simply stop the production of its UP activity sensors.

The remaining inventory of UP2, UP3, UP4, and UP Move has been resold to a third party, who is now responsible for their distribution. This deal allows Jawbone to bring in cash to develop a new product. The prices recorded lately on the UP range were an index on this transaction (the UP2 is for example in sale at 46 € instead of 119 € currently).

The shadow of Fitbit

These announcements come in a 2016 year that started with 165 million raised at a valuation lower than previous. Despite this, the sales figures, and the legal war with Fitbit, ultra leader, have only made matters worse. In the first quarter of 2016, Jawbone does not even appear in the top 5 sellers of wearables, far behind Fitbit, Apple or even Xiaomi and Garmin in sales volume. Indicators are therefore extremely negative for the company that laid off 15% of its employees last November.

UP2 UP3 UP4

For having experienced it through your reactions on the site, Jawbone missed a very important step in 2015 with the failed launch of UP3, which presented yet on paper interesting characteristics compared to its competitors. But the launch delay had a catastrophic effect on the image of the brand, which really did not need that.

And now ?

For having tested most of the activity sensors of the market, it is clear that Jawbone has a real strength: its application. The UP coach is the most complete on the market, but that will not be enough to save the company, even if the company has a card to play on the software, as Nike could do after the production stop of the Fuelband.

Salvation could come from a new product, under development. Several sources agree on a sensor dedicated to health, analyzing the heart rate. It would collect medical data, and could even be approved by the FDA (the American equivalent of the AFSSAPS). The product would deviate from the spirit of UP activity sensors, so Jawbone will try to conquer a new market. The announcement should be made before the end of the summer, the health sensor having to pass more tests than the UP range.

One thing is certain, after UP's reliability concerns and the delay in launching UP3, Jawbone will have to hit hard to have a chance to survive in this increasingly competitive market.

Jawbone asserts his right of reply

Jawbone contacted us to reply to the article, here is their statement:

"The speculation that Jawbone is leaving the wearable technology sector or going out of business is wrong. These rumors come from incorrect insinuations posted on a blog whose journalist has since published a "correction". Unfortunately, other media have echoed before the publication of the latter, and incorrect information has spread.

Jawbone is always committed to innovating in portable technology and achieving excellence in this field. We have never been so excited about our roadmap, and look forward to sharing our upcoming technologies and products. We manage our inventory according to our internal processes and systems and our strategic objectives of product life. The current situation is no different, and we will continue to support all our products on the market. "

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