Sunday, April 27, 2014

NikeFuel Ecosystem in Partnership with Apple

With Nike’s focus on digital sport software, it was reported that Nike CEO, Mark Parker has plans for expansion of the NikeFuel ecosystem with partners like Apple. In a recent interview, the CEO had said that his company would not be giving up on its digital sport after the end of FuelBand.

Moreover he stressed the importance of its existing relationship with Apple and was looking forward to future relationship with its partner. It was also reported that Nike had laid off its Fuelband team and had stopped building new fitness tracker hardware which is a strategic way of opening up Nike software to other wearable platforms.

Moreover the source also implied that one of these upcoming iWatch or iBand would be from Apple. With the discontinuation of the Fuelband line as well as laying off most of the team, it seems like a failure for Nike, while Fuelband software also called NikeFuel would get a huge push from Apple customers with their sights set on the iWatch.

Focus on FuelBand software

Parker, it was reported saying that they were focusing more on the software of the Fuelband experience making it a part of wearable going forward which would be integrated into other products that were created and then they would be expanding their partnership in order to create more reach for the Nike Fuel and Fuel system that they had.

According to him the best way to do it was to get involved with good partnerships. He had also informed CNBC regarding Nike’s laying off of its Fuelband hardware team that the company was planning to expand the reach to Nikefuel by getting into partnership with other companies.

It was also reported that the move would be similar to the way most of the consumers were now accessing the Kindle store through a tablet and not a Kindle. With Nike and Fuelband software, it would be similar to Apple’s fitness ecosystem featured on the iWatch.

Strong Push on the Software

When Parker was asked if Nike had plans to exit the wearable hardware market, he stated that they were focusing more on the software part which according to him would be part of wearable that would be going forward.

Though the Nike chief refrained from confirming the Fuelband’s death he commented saying that there would be a strong push on the software of the company’s proprietary Nikefuel activity quantification as well as measurement system.

He had commented saying that they were just looking forward in continuing the relationship between them and personally they were very excited about what laid in store for them. Recent estimates from market research group NPD reported by MobiHealthNews informed that Nike’s fitness tracker accounted for only ten percent of $330 million in fitness tracker sales for the year 2013 and in a price tag of $150, Nike had sold last year around 220,000 Fuelbands.

Nike and Apple had collaborated on Nike + iPod projects, the most recent being Nike + app integration and Apple CEO had participated in Nike’s board for nine years which played a role in the brand’s ability to be on the cutting edge of fitness software which was incorporated in Apple products.

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