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.

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