Nike is gearing up to shutter its wearable-hardware efforts, and the sportswear company this week fired the majority of the team responsible for the development of its FuelBand fitness tracker, a person familiar with the matter told CNET.
Yikes. Though the reality is that this seemed inevitable as something Apple this way comes:
As Apple enters the fray, Nike has a potential partner. Apple CEO Tim Cook, who was seen wearing a FuelBand at the company’s launch of the iPad mini in October of 2012, sits on Nike’s board, and has for the last nine years. That relationship has been fruitful over the years, helping Nike enter the wearable market as early as 2006, with the Nike+iPod shoe sensor package, with a strong brand partner.
I’ve been saying this for a while: Tim Cook remaining on Nike’s board while Apple readies its own health/fitness-focused device was awkward at best. Unless Nike decided to exit that business and instead partner with Apple on such a device…
(As an aside, Secret strikes first again on this news.)
Update: Nike has issued a fairly standard non-denial, denial. They’re admitting to the layoffs, but dismissing the notion that the FuelBand is being killed off. To which I say, as always with these types of statements: yet.
(Of course they’re not going to admit to killing the FuelBand right now, there is still product on the shelves — not to mention new color variations, long in the pipeline, about to launch. They could either kill the product and sell none of those or postpone that announcement and sell at least some of those. No-brainer.)