Nike fires majority of FuelBand team, will stop making wearable hardware
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Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#2Not a fortuneteller but my guess is they're giving up way too early. One of the few mass-market, non-tech companies that actually had a shot in wearables.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#3stop making wearable hardware
...including shoes?
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#4Total market / large number of players = unsustainable business.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#5I'm seeing this from the bottom up in other areas. The general question being asked is "Isn't this actually just an app? Do we really need the device too?" And very often the answer is it's just an app.
The Google coming in factor is not to be underestimated, however, what appears to be going on there is Google effectively ensuring no one (except Apple) gets to make money on wearable hardware. Apple will steal the premium sector, again, (mix of iOS compatibility, prestige branding and likely a couple of out there features) but because Google seem to view it as a way to attach Google Now to your wrist first and potentially profitable app ecosystem very distant second they'll drive the price of the hardware down to the point Nike's decision here looks very wise indeed.
The ad/search business is to Google what Windows is to Microsoft, and in order to create new profit centres they really need to forget it.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#6Not a fortuneteller but my guess is they're giving up way too early. One of the few mass-market, non-tech companies that actually had a shot in wearables.
With the iPhone having the M7 built-in is there any need for the Nike FuelBand? I find data from the M7 to be quite accurate. Seems like they can just create the software and let Apple (and eventually Android device makers) build the hardware.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#7Total market / large number of players = unsustainable business.
Or maybe the first wave of the next set of things becoming smart. $12 phone http://www.bunniestudios.com/blog/?p=3040 means maybe we get shoe-phones after all.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#8Even more amazing is that it was first reported on Secret a week ago: https://www.secret.ly/p/uxaztevdcicghcabkkczuzkpkz
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#9These gadgets might make a nice 'halo' product for a big Nike Town store, however, from a general retail perspective these fairly standalone electronic gadgets are a pain to stock, sell and process when they come back as returns.
They just don't sell the units to justify the floor space or the capital for the stock. Plus there is always someone online that can sell them cheaper without the hassle of a customer cluttering the shop for an hour whilst they evaluate the purchase. Staff are not knowledgeable on such items and, in the time that one gadget is sold, that member of staff could help untold other customers on products that are core business.
I am sure that Nike could take on all comers with 'first mover advantage' with wearable gadgets. They could even do a Facebook and buy out the likes of 'strava'. However, these gadgets don't sell too well through the normal retail channels that Nike rely on for most of their sales.
Re: Nike fires majority of FuelBand team, will stop making wearable hardware
#10It's surprising to see it so early, but they probably see the writing on the wall. Once Android Wear and Apple wearables start rolling out, it's going to be a slaughter out there.
Apple and Nike teaming up for the iWatch launch is probably a safe bet now too.