Nokia divests Withings, it’s Health business
Nokia is selling its Withings digital health business back to the original founder. Withings famous for its connected health devices such as WiFi enabled body scales, fitness trackers and baby monitors has only been part of Nokia for 2 years. According to the Verge, Withings products weren’t making enough money for Nokia in its short time under their watch. Just last year, the company announced a write-down of $164 million on the assets.
It is not clear the fate of Withings going forward especially in a very competitive and low margin B2C/hardware business. One indicator to watch for this sector is share price. Fitbit, a market leader is trading at about $6 a share and Jawbone just went out of business.