Fitness tracker electronic company, Jawbone, is preparing to shut itself down as it moves towards opening a new health centred company.
Jawbone at its peak was valued at USD$3 billion. But after its competition with Fitbit proved fruitless the company is now preparing to close the company and sell its assets.
But this isn’t the full end for the company. CEO Hosain Rahman has founded a new company called Jawbone Health Hub that will make health-related hardware and software services.
Many Jawbone employees have already shifted to the new company.
Although many consumers are reportedly worried about their current Jawbone items working after the company has closed, but representatives have assured the items will work as usual.
As Jawbone steers more towards the health sector, their items can still be purchased at New Zealand locations such as Harvey Norman.
Jawbone, once a start up created 18-years-ago, had multiple investors and funding to help the company stay afloat. But with the unwavering rise of Fitbit, worth an estimated USD$8.6 billion, Jawbone took the opportunity to move to a different part of the health sector.
While Jawbone’s existing customers seem out of luck, Jawbone’s competitors may gain some advantage.
Jawbone Health Hub is yet to rise from the ashes of its predecessor, but analysists expect the hub to be in full operation before the end of 2017.