Rumours of Jawbone's demise dominate as Marketplace goes live

Financial troubles and UP3 delays reported as IoT store launches
Jawbone rumoured to be in financial trouble

"Jawbone's finances are 'perilous' as wearable startup fails to make profit"

That's the worrying headline from an IBTimes report that quotes a lawsuit between the UP3 maker and Flextronics, a contracted manufacturer.

"Jawbone has materially (and repeatedly) breached the terms of a clear and unambiguous contract to the extent of over $20m in goods received but not paid for."

Must read: Everything you need to know about the Jawbone UP3

The report is born out of a Fortune magazine article that details the August 2014 legal action, which Jawbone has subsequently claimed was a result of “miscommunication between two partners”.

The US money mag also claims that the company isn’t profitable, is struggling to garner funding and suffered "a production glitch that caused Jawbone to sit out the critical Christmas selling season". Triple whammy.

We asked Jawbone for a comment and were simply told that the company never comments on financial speculation.

We hope the outlook isn't as grim as the reports suggest - Jawbone is one of the leading lights in the wearable world and, even with the UP3 shipping delays, expectations are high for the company's next-gen fitness tracker.

The Californian company 'gets' wearables and is firmly engaged in the connected self revolution. Further proof, if needed, is the recent launch of the Jawbone Marketplace - an online store offering third party IoT devices that tap into its UP ecosystem.

“At Jawbone, we embrace the promise of the Internet of Things. We can only put all this together if we work with other. This notion of an open ecosystem is critical to making the Internet of Things a success,” said Hosain Rahman, Jawbone's CEO.

That philosophy is realised in the new Marketplace that offers devices like the Nest thermostat and the SmartThings Kit, and subscriptions to platforms such as Sleepio and Fitocracy.

The Jawbone Marketplace is live now, check it out.


  • bpjauburn says:

    While I appreciate Jawbone continuing down the innovation path of TIOT, it would be beneficial for them to execute significantly better on the things they are supposed to be working on now. The cluster that is the UP3 is going to hurt them in the market unless they communicate with customers and deliver the product. 

    • speedyv says:

      I couldn't agree more! I got a call about $40 off my preorder, I like my jawbone UP24 so I said sure. I asked when I might expect delivery the answer I got was "Well Decembers orders are still on track for delivery." Not sure what that meant exactly, I'm getting sick of waiting for something I ordered in November though, I feel bad for the company but it needs customers to stay afloat and at this rate they won't have any.

      • martib says:

        I ordered mine in late November and am still waiting for the product.  Just talked with Jawbone and customer service really has no answers - other than release is expected in "early 2015".  It's now March so how early can it be?  Thinking of canceling and going with something else.

  • BILLBRASKY says:

    Yesterday, I called and cancelled my UP3. I went out and bought my girlfriend and I the Fitbit Charge HR; needless to say we are very satisfied with the purchases (and bailing from this Jawbone fiasco). 

    This is my first fitness tracker and I encourage anyone holding out on the UP3 to make the switch to Fitbit... This thing rocks.

    • mcologne says:

      You just don't know the UP3. How can you make suggestions for others?


  • mcologne says:

    How can you make suggestions?

    Did you try the UP3?

  • Will says:

    Not really a surprise. Much of the technology being used in the UP3 was/is derived from sensor tech that Jawbone acquired when they purchased Bodymedia. This tech was originally slated to be included in the Core2 armband from BM that they had to scrap after countless attempts and failures to properly launch that product. Once it became clear that the last attempted iteration of the armband was never going to fly, they gutted Bodymedia, laid off a huge chunk of their work force and started trying to wedge that tech into the UP3. 

  • codemonkey2k5 says:

    I would love for someone at Jawbone to explain to us what they consider to be early 2015? The truth is that this is in fact a time frame. So this means you must have at least three time frames for a year. Early, Mid and Late. What months constitute each time frame? You have committed yourselves to the Early 2015 time frame. So please tell me at what point that Early 2015 ends.

  • martib says:

    It would be nice to know the truth on what is going on.  I ordered my UP3 at the end of November and am still waiting to receive my unit.  I'm thinking it might be time to take a look at another brand and just cancel this one.

    I would also like to know what "early 2015" means.  It's already March and with all these articles about financial woes and such - I don't know whether to stay or bail.

  • Stock777 says:

    If they are having financial problems and problems with mass manufacturing, I would ask for a refund. The fitness tracking business currently has a lot of players and a few of them have tons of money to back them up. In the end there will only be a handful left.

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