Nike fails to fuel its FuelBand dream: What really went wrong

Rumors of Nike exiting the wearable device market for good have been circling the Internet for quite some time. However, these rumors have intensified after Nike fired most of its FuelBand team due to the failures of the device in the marketplace.

As per the person who is familiar with Nike's decisions, the company plans to exit the wearable device business and stick solely to software, mainly improving the Nike+ app for the iPhone, thus having no idea if Nike plans to launch the app on other devices, or if the company is interested in creating more apps in the future.

"As a fast-paced, global business we continually align resources with business priorities," Nike spokesman Brian Strong said in an email. "As our Digital Sport priorities evolve, we expect to make changes within the team, and there will be a small number of layoffs. We do not comment on individual employment matters."

To prove how terrible the FuelBand performed, Cnet has reported that as many as 55 people were fired from the 70-man team behind the wearable device on Thursday. This alone could be signs that Nike has no intention to return to the wearable device market, but we might be getting ahead of ourselves.

Nike gave the impression that the company is not yet ready to leave the wearable device market just yet.

"The Nike+ FuelBand SE remains an important part of our business," Strong added. "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."

The big question though, why is Nike firing over 80 percent of the FuelBand's workforce? Well, the device did not perform up to expectations in the marketplace and based on an anonymous post via the app Secret, a social network for gossip centered on the tech industry, problems could lie with the execs.

"The douchebag execs at Nike are going to lay off a bunch of the eng team who developed The FuelBand, and other Nike+ stuff. Mostly because the execs committed gross negligence, wasted tons of money, and didn't know what they were doing."

It is clear that wearable devices are bound to take off with the amount of top technology companies entering the space. It would be wise for Nike to return to the drawing board, and then bounce back again before the market is too crowded.

Source:

www.techtimes.com

Posted by Editorial Team on 12:08 AM in 80 percent, FuelBand, marketplace, Nike fails, Nike+, Secret, social network, spokesman, technology, wrong

Nike to stop making FuelBands: Report

It's shutters for Nike FuelBand fitness tracker. According to a report in CNET, the sportswear giant is reportedly exiting from wearable hardware business altogether. 

"As a fast-paced, global business, we continually align resources with business priorities," said a Nike spokesperson iIn an email sent to CNET. 

"As our Digital Sport priorities evolve, we expect to make changes within the team, and there will be a small number of layoffs. We do not comment on individual employment matters," he said. 

Citing sources, the report says that Nike has laid off the majority of the team responsible for the development of the FuelBand fitness tracker. 

As many as 55 people on Nike's 70-person hardware team were laid off earlier this week, reported CNET. The team is part of its larger, technology-focused Digital Sport division which comprises around 200 employees. The division focuses on areas like industrial design; manufacturing operations; electrical and mechanical hardware engineering; and software interface design. 

The team makes Nike+ sportwatch and other peripherals. The company has also shelved all future physical product projects under the Digital Sport division. 

For now, however, Nike will continue selling the second-generation FuelBand SE. In a follow up email, the company spokesperson said, "The Nike+ FuelBand SE remains an important part of our business. We will continue to improve the Nike+ FuelBand App, launch new MetaLuxe colours, and we will sell and support the Nike+ FuelBand SE for the foreseeable future." 

The report also said that the exit from wearable hardware market does not mean the company is giving up on the technology, Nike is just turning away from hardware and realigning its focus on fitness and athletic software. 

Analysts have reportedly termed Nike's move smart, considering the huge competition in the fitness tracking devices market. Also, with smartphones like Samsung's Galaxy S5 and Apple's forthcoming iPhone 6 adding fitness-related features, the commpetition is bound to get tougher. 

Nike had launched FuelBand in February 2012. The device got an update in October last year when the company announced Nike+ Fuelband SE.

Source:
timesofindia.indiatimes.com

Posted by Editorial Team on 8:10 AM in 55 people, FuelBand, FuelBands, global business, iPhone 6, move smart, Nike, Samsung's Galaxy S5, sportswear, technology