Nokia closes digital health sale to Withings

Nokia has closed the books on its unlucky foray into digital health devices and services, and with it, a business is marking its return to the world of startups. Today, the Finnish telecoms giant announced that it has closed the sale of its digital health division, along with 200 employees, to Eric Carreel, the former chairman and co-founder of Withings. Now Carreel plans to relaunch the business once again under the Withings brand by the end of this year, with products focused on preventive health.

Withings had formed the core of Nokia’s digital health business after it acquiredthe company, famous for its smart scales, in 2016 for €170 million. Nokia later rebranded the business as Nokia Digital Health.

Back at Withings, in addition to connected scales, the company today makes activity tracking watches, blood pressure monitors, a smart thermometer, and a sleep tracking pad, which work with an app it calls Health Mate. The focus on preventive health sounds like it will keep all of these in place.

The story of hardware startups is one of many optimistic and often exciting ideas, but also a lot of failures, as the realities set in of developing supply chains, trying to find the right economies of scale and of course finding customers for your shiny new gadgets. Withings is some way out of the initially hard part of simply getting products designed, working, made and out into the market, but it will still have to contend with keeping the business operating and growing — challenges that Nokia clearly could not surmount.

One thing in its favor is the rise of AI and the general expansion of possibilities that come with all the data that can now be collected. Putting aside clunkers like Theranos, a number of startups — such as Ava, which is focusing on women’s health — have been exploring not just what kind of data they can gather from wearables and other devices, but how to “read” that data and match it up with new understanding about disease pathology and health, to gain more insights about us and how we work.