Jawbone is a wearable technology maker and puts strong emphasis on design. Its products are aimed for the modern mobile lifestyle and are unique due to their cool design. The devices are sensor enabled bracelets that track and analyze activity. Star designer Yves Behar is Jawbone’s Chief Creative Officer, putting its products amongst the most demanded in their respective categories. Additionally, the company’s emphasis on data analytics is highly innovative and disruptive.
Jawbone is aiming to disrupt wearable technology by combining hardware with software, with design, with data. Its opportunity is to become a leader for the “Internet of Things” category.
Hosain Rahman founded Jawbone in 1999 and has been its CEO since then. Hosain successfully managed to overcome two difficult time periods with the company, one in 2005 when it almost shut down, and recently when Jawbone had to recall its popular UP wristband. Today, he has positioned Jawbone to be a leading wearable technology brand. Hosain graduated from Stanford University.
Currently, Jawbones fitness tracker products include: The UPmove wristband, the UP2, and the UP3. The devices are slick jewelry-like wristbands that tracks daily activity, sleeping and eating habits, and display the analysis on a phone app.
Wearable technology is an emerging trend that will likely shape our lifestyle in the next 10 years. Research estimates peg wearable technology to be a $34 billion market by 2020. Jawbone’s position among the leaders in this category gives it a strong advantage to capture a significant part of the market.
Jawbone has the potential to grow to a multi billion dollar business in the next 3-5 years.
The UP wristband has had material problems in the past, and competitors like Apple, FitBit and Xiaomi are challenging Jawbone’s position in the field. By focusing on the software-as-a-service component (driven by the large amount of data it collects), Jawbone could increase customer and revenue visibility.
Competitive headwinds from FitBit, Xiaomi and Apple are among the largest risks. Additionally, Jawbone and FitBit have been in legal disputes over patents.
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