Boston, MA 05/13/2014 (wallstreetpr) – It was recently reported by CNET, technology based website, that Nike Inc. (NYSE:NKE) had no better options, but to exit from their existing divisions of the hardware operations of the Fuelband section. This became apparent after the company started a series of layoffs in its hardware segment.
The company was gradually shifting its focus on its digital sports activities, and as result needed to develop its software quality.
Nike stated they were interested in developing their FuelBand app along with the recent offering of the Metalux colors.
The Other Choices
The management at Nike decided that it was more important to concentrate their operations on the software front with the offering of suitable apps. As a consequence, Nike Inc. (NYSE:NKE) has developed some well known apps that include FuelBand, FitBit and Jawbone. Collectively they offer useful information regarding the number of steps taken by a person, the quality of sleep of the individual and other health related issues.
The previous hardware business of Wearables was not as profitable as the offering of the different sports concerned apps on account of the very low margins that it generated in comparison to the newer software apps. In fact, it was practically a no-brainer when it came to choosing between the two.
Joint Interest with Apple
Nike Inc. and Apple (NYSE:APPL) are both focussed on providing software in the fitness tracker bands segment. They both realize that there is huge potential here, on account of the lack of quality players that can offer similar benefits.
Apple is all geared up to launch its fitness band called iWatch to match Nike Inc. (NYSE:NKE)’s FuelBand app. However, it is more than likely that the two giants will join hands and collectively offer much better software in the times to come.
It is already well known that these two companies have been in since 2006 and have made several joint offerings, and there is no reason to believe that this new endeavour will be a huge success.
