Layoffs at Nike's FuelBand unit took many by surprise when the news broke Friday, a move that has further fueled speculation that Apple may be working with the sports-apparel maker to develop an iWatch.
A CNET report described the first rumblings of trouble at Nike's wearable-tech unit on April 9. Soon after, an anonymous post appeared on Secret, which said much of the FuelBand staff had been dumped; that was followed by another story on Friday that claimed the same.
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But if a follow-up statement from Nike is any indication, reports of the FuelBand's demise could be premature.
"We will continue to improve the Nike+ FuelBand app, launch new METALUXE colors, and we will sell and support the Nike+ FuelBand SE for the foreseeable future," a company spokesperson told Mashable on Friday.
To Nike's credit, the company did post a Twitter message just days before CNET's Friday report, touting the latest version of the FuelBand.
Spring style alert: Rose Gold is in. http://t.co/XqWiCFFBqF pic.twitter.com/dGw4sEBzav— NikeFuel (@NikeFuel) April 16, 2014
The reason so much attention is being focused on the future of the FuelBand likely has a lot to do with its pedigree. It's made by Nike, a brand many would argue sits atop its industry as the Apple of sports apparel. it's universally admired, known for its aspirational marketing campaigns and logo, which has become a mark of quality.
The fact that Nike might fail in its efforts to pioneer the wearable-tech space is troubling, particularly for other would-be wearable-device makers, and even more so when you consider how attractive the FuelBand is, showing up on the wrists of celebrities and top-tier CEOs alike.
Whether it's the device's somewhat high price tag for an accessory ($149 at launch), the mostly bad reviews on Amazon that question the efficacy of Nike's FuelBand point system, or the dozens of competing wearable devices at lower prices, the bottom line is that the FuelBand hasn't caught on. And that, in turn, fed into the initial report of layoffs-as-the-end-of-FuelBand -- despite denials from Nike.
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In the wake of the FuelBand-layoff reports, some are pointing to Nike's close relationship with Apple (Tim Cook sits on Nike's board) as evidence that the companies are working together to develop a wearable computing device.
Reactions to the layoffs across Twitter reveal mostly surprise that Nike might ditch the FuelBand. But for many industry observers, all signals point to an Apple iWatch.
THEORY: Apple, being tight with Nike, was like, “Hey try this out for us. We wanna see what the market is like.” FuelBand. Born, killed.— Sam Sheffer (@samsheffer) April 19, 2014
Nike shutting down fuelband should read: Apple gearing up iWatch launch— Tom Hatton (@tomrefme) April 19, 2014
Whoa… this is kind of surprising. Nike cutting the FuelBand? Is this because of Apple? http://t.co/5RpxIUCICO via @cpen— Veronica Belmont (@Veronica) April 19, 2014
Nike EXITS Wearable Business - No more FuelBand - Concedes the market to Apple and Samsung $AAPL and $GOOG $NKE— Steve Mahoney (@SteveMahoney_) April 19, 2014
Like folks are saying. If Nike knows what Apple is coming out with hardware wise, they probably got message it's time to move out of the biz— Nate Jones (@JonesOnTheNBA) April 19, 2014
Nike shuts down whole fuelband division. Sounds like disaster by execs. I think converse stores also a disaster. I had high hopes-wrong $nke— howardlindzon (@howardlindzon) April 19, 2014
Goodbye NIKE Fuelband. Related: Influencers everywhere question how they will advertise their influence. http://t.co/nY07U0kvoy— Noah Callahan-Bever (@N_C_B) April 19, 2014
Wow, Nike canceling the Fuelband? Tim Cook serves on Nike’s board, and the iWatch is expected in 2014. Ultimatum? Partnership? Coincidence?— Ryan Block (@ryan) April 19, 2014
But despite the surprise expressed by many in reaction to the layoffs, for longtime conspiracy theorists, the biggest signal that the end of the FuelBand might lead to an iWatch came last year, when Apple snatched up FuelBand developer Jay Blahnik.
What's more, Cook's recent comments that Apple will soon enter a "new category" continue to drive rumors that we may soon see a wearable from the Cupertino, Calif. company. And now that we know the FuelBand's future is on the ropes, those iWatch rumors look even more realistic.