Jawbone On The Chopping Block
Looks like Jawbone, one time darling of the wearables market, is in serious financial difficulty. Fortune is reporting that the company is seeking to sell off its audio products business and is doing so under serious financial pressure.
Meanwhile TechInsider is reporting that the company has liquidated its remaining stock of fitness hardware via a reseller, in order to raise the revenue to keep the business going. In addition it has also stopped manufacturing its UP hardware and is unlikely to re-enter the business.
As Jawbone completed a $165m funding round less than six months ago, it’s probably safe to say that the company is burning through cash at a tremendous rate. Now that it has no products and no manufacturing going on there’s going to be something of a challenge turning the business around.
For Jawbone the problem seems to be that its fitness trackers are being blown out of the market, particularly by Fitbit, but also Apple and Pebble. And its speaker business is being eaten away at both ends – premium products from Bose and Beats, entry level from just about anyone capable of putting a speaker into a box with a Bluetooth receiver.
So having taken on around $1bn in debt, mortgaged its patents against a loan last year and run out of product to sell, what future is there for Jawbone?