Despite the fact it was one of the first companies to join the wearable space, it looks like Jawbone is in trouble.
According to a report from Tech Insider, the San Francisco-based company has sold its remaining UP2, UP3 and UP4 stock to a third-party re-seller at a discount, and has stopped producing those devices. Citing an unnamed source (presumably within the company), the publication says Jawbone was forced to make the decision in order to have enough revenue to stay in business. Jawbone is also reportedly attempting to find a buyer for its under performing Bluetooth speaker business.
The company raised $165 million USD in private equity funding as recently as this past January. To date, the company has raised close to $900 million USD in startup capital, according to CrunchBase.
That said, the fact Jawbone finds itself in trouble is not surprising. According to a recent IDC market research report, the company doesn’t make an appearance among the top five wearable makers; in fact, it’s not even on the list, as it didn’t ship enough devices in Q3 2015 to qualify.
Like most tech verticals, the wearable space is consolidating around two main players, Apple and Fitbit, leaving little space for outside players like Jawbone.
Update: Jawbone just issued a statement to Tech Insider, the publication that originally ran the report.
“Jawbone has not ceased working on the production of UP products nor do we intend to. Each and every employee at Jawbone is currently focused on the design, development, marketing and production of either our current, or our next generation, UP wearables product line.”