In a surprising move, Jabra's parent company, GN, has announced its exit from the consumer headphones market to concentrate on more profitable areas. Known for its popular Jabra (ג'אברה) brand, the company will halt the production and sales of its consumer wireless headphones by the end of the year.
Peter Karlstromer, the CEO of GN, explained, “The decision to gradually phase out the Elite and Talk product lines aligns with our commitment to focus on attractive markets where we can deliver profitable growth and strong returns.”
In late 2023, Jabra aimed to enter the premium market, competing with major audio brands like Apple, Sony, and Bose. However, Jabra has acknowledged that "markets have evolved over time," and they concluded that they "cannot generate a fair return on investment compared to many other opportunities in the hearing aids, enterprise, and gaming businesses."
GN’s press release stated, "The investment required for innovation and future growth in this competitive field is unjustified." Simply put, the company sees greater profit potential in enterprise hardware and hearing technology sectors.
Jabra will gradually reduce its product inventory and expects to complete the market exit by the end of the year. Nevertheless, the company assures that it will continue to provide service and support for its devices "for several years."
Bconnect Technologies, GN's representative in Israel, announced, "The company is aware of the situation. At this stage, Bconnect will continue to market the products at least until the end of the year. The company will continue to support and serve the brand’s customers while maintaining its extensive business activities and other high-quality brands from the group."