Nike goes out of the business with smart accessories?
The first large company that launched smart accessories out of this segment. Concern for Nike sportswear is preparing large-scale redundancies in the unit that develops hardware and is responsible for the digital fitness bracelet FuelBand. The company will continue to maintain current devices, but is fully oriented to the software and not released new models smart accessories. The decision of the giant sporting goods shows two things: that the market is tough, and players become too much. During this year’s Mobile World Congress in Barcelona in February showed similar devices Sony, Huawei, Samsung, and small independent companies like Jawbone.
Nike was first among major producers, once in 2012 launched a similar smart accessories that take different exercises and following biometric parameters of users. But the real pioneers start-ups Fitbit and Jawbone, which several years ago they brought their smart fitness accessories. Nike initially combined sensor in his running shoes that are tied to the music player iPod or iPhone smartphone from Apple. Subsequently, the products have evolved to the creation of digital bracelet .
Already in the past week in anonymous social network Secret appear rumor cuts in unit electronics Nike. According to the technology blog CNET decision will affect 55 people out of 70. Barely Tuesday by Nike confirmed for the forthcoming changes.
“The dynamism of global business requires constantly restructure their resources against business priorities,” said the spokesman of the concern sporting goods Brian Strong, quoted by technology blog TheVerge. “We expect to make changes to the digital team sports, which will also include a small number of layoffs,” says Strong.
The first version of the FuelBand was released in 2012, but Nike was unable to become a hit. However, the device was able to achieve 10% market share in the beginning of this year in the segment in 2013 is estimated at 330 million dollars. Fitbit is the pioneer leader with 68% share and Jawbone managed to take 19%, according to the research firm NPD Group. In the autumn of last year, Nike released the new version of the smart bracelet that added Bluetooth connectivity and a wide selection of colors, but without showing specific additional innovations. At the same time there were speculations that the main designer of the FuelBand has gone to work at Apple. It is assumed that the technology giant is developing its own smart accessory by far the signals are in the direction of a digital clock. According to CNET draft version of the bracelet Nike has been terminated along with other developments in the hardware department of the company.
An important part of business
Concern sporting goods may be out of the market for smart bracelets, but not completely abandon this segment. It is assumed that the company will focus more on writing software applications for sports and fitness, which can be integrated by manufacturers of smart accessories. Nike has also released its own software incubator in San Francisco, called Fuel Lab. Its aim is precisely to help companies integrate software group in their products. Nike said it will continue to support the second version of the bracelet FuelBand SE.
“FuelBand SE remains in the future an important part of our business – Comment from Nike. ‘ll Continue to improve application Nike + FuelBand, adding new colors for the bracelet and keep it in the near future.”
Without competition winners
Nike decision to abandon the development of smart accessories is not accidental and shows the shortcomings of this niche. Digital fitness bracelets may still prove to be not so promising market as it seems at first.
First is oversaturated market. Nike is not the first company to be redirected from the sale of devices to software development. Another former producer – Lark, no longer makes bracelets Larklife, but instead develops new smartphone application for Galaxy S5 of Samsung.
“We decided to become a software company that writes programs related to sensors in smartphones,” said Lark founder Julia Hu , quoted by technology blog Recode.net. “Production of hardware is a tricky business , because distributors and component suppliers are important factors in the sector and are beyond our control , and require much available capital.”
Since the beginning of the year entering the segment and major technology giants such as Huawei, Samsung and Sony. Moreover, smartphones began to add more sensors that monitor biometric data. In combination with the necessary software they negate the need for a separate device. We should not forget the smart watches with a high IT companies plan to integrate such sensors. The release of a specialized version of the mobile platform Android, optimized for smart accessories, suggesting that perhaps the days of digital fitness bracelets are numbered.http://szlifestyle.com/sz/2014/04/24/nike-goes-out-of-the-business-with-smart-accessories/https://i1.wp.com/szlifestyle.com/sz/wp-content/uploads/2014/04/sz_nike_smart_b.jpg?fit=620%2C348https://i1.wp.com/szlifestyle.com/sz/wp-content/uploads/2014/04/sz_nike_smart_b.jpg?resize=150%2C150TECH NEWSgadgets,Nike,smartwatchThe first large company that launched smart accessories out of this segment. Concern for Nike sportswear is preparing large-scale redundancies in the unit that develops hardware and is responsible for the digital fitness bracelet FuelBand. The company will continue to maintain current devices, but is fully oriented to the...Nicolas T.Nicolas T.firstname.lastname@example.orgAdministratorNicolas T. is a writer/editor of szlifestyle.szlifestyle.com Tech News, Life Style, Reviews, Videos!