Boston, MA 05/28/2014 (wallstreetpr) – Speculations are widespread that Nike Inc (NYSE:NKE) and Apple Inc (NASDAQ:AAPL) could be working towards a tie-up in the wearable electronics market. The recent developments come as clear pointers that the companies could indeed be interested in working together in developing a device that would offer more than just tracking of exercise activities.
Nike recently announced halting the production of new FuelBands, its version of wearable electronic device that supports exercise activities by tracking heart rate and strides among other activities. The company also announced significant job cuts in the FuelBand division. Before Nike made that unexpected move, Apple Inc in September last year hired the former head of the division that helped develop FuelBrand at Nike.
With increasing popularity of wearable devices, it beats the understanding of business writers and analysts why Nike Inc (NYSE:NKE) would pull out of the wearable market when its business is clearly blossoming.
However, given the working relationship that Apple Inc already enjoy with Nike, the changes that Nike is making in its FuelBand division leave no doubt about the company is interested in an investment that can stand the test of time in the smart wearable market. Furthermore, the FuelBand device uses a set of apps based on Apple Inc’s technology.
iWatch to incorporate FuelBand
In view of the latest developments and the market realities, analysts believe that Nike Inc (NYSE:NKE) and Apple Inc could join forces in developing a wearable device that incorporates Nike’s FuelBand technology and other features. That device would enable the users of the device to do more with their wearable.
In any case, Apple Inc is the only one among the highest-profile tech companies that still lacks in the wearable market space. Its peers such as Samsung Electronics and Google Inc (NASDAQ:GOOG) already have a presence in the wearable market and Samsung is particularly doing well in the market.
Better together
In order to unsettle the competition and gain bigger and faster penetration of the market, it makes sense for Apple Inc (AAPL) to launch a product that offers more than the average wearable. And that is easy, if not possible, through a deal with Nike Inc (NYSE:NKE) that already has a presence in the market and a significant growth potential.
