Apple will reportedly enter the wearable market later this year with a smartwatch dubbed the “iWatch.”
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Samsung, which introduced its first smartwatch last year, continues to update its Gear watch line and its Gear Fit wristband.
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Google’s Android Wear - an operating system designed for wearable devices - has attracted a bevy of partners, including Motorola and Fossil, which have both announced Android Wear-powered smartwatches. The possible move out of hardware comes at a time when existing mobile device makers are looking to the wearable market for new opportunities. At one point, the decision was made to officially cease wearable hardware development, though that may have changed since the discussions were initially held and deliberation may be ongoing, the person said.Ī Nike spokesman said the company had no further comment to provide.
The discussions at Nike, which released its next generation FuelBand last November, took place in recent months, said the person, who asked not to be named because the talks were confidential. “It’s to develop this customer database and pool of customers that they can have a dialogue with…to make people more active and thus increase demand for core products.” “The agenda isn’t to sell FuelBands,” said Jim Duffy, a Nike analyst with Stifel, Nicolaus & Company, on Nike’s wearable focus. Tim Cook, Apple’s CEO, has served on the Nike board for nine years, and the Nike FuelBand companion app has - for the two-year period its been on the market - always been exclusive to Apple’s iOS mobile operating systemfor the iPhone and iPad.
It could also potentially partner with Apple. Nike may be better situated as a data collector and app maker for its increasingly robust digital fitness platform, Nike+, than it is a seller of wristbands, say analysts. The FuelBand accounted for 10 percent of sales of all wearable fitness trackers from brick-and-mortar stores and large online retailers last year, according to The NPD Group.ĭitching its devices wouldn’t mean the end of Nike’s wearable presence. However, the nascent fitness tracker market was estimated to be worth just $330 million in 2013, with competitors - from Fitbit and Jawbone to Withings and Garmin - all scrambling for a slice of that pie. Nike has never disclosed sales figures for the devices. Nike currently sells its flagship device, the Nike+ FuelBand SE, for $150 alongside its Nike+ sports watch for $140. Nike, which expanded its focus from sportswear to technology with its wrist-worn FuelBand fitness tracker two years ago, has held serious discussions about exiting the market for wearable hardware, a person familiar with the matter told CNET. Consider, for one thing, the Apple connection, says Nick Statt in this post from CNET: The sportswear company could be close to ditching its fitness hardware efforts, but don’t sound the death knell for Nike technology.
Nike FuelBand’s journey may be coming to an end, but the sportswear company is strong on its technology.
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