Nike Was Right to Kill the FuelBand

Nike has killed its Fuelband, a product that was high on wish lists last holiday season but may soon be obsolete. 

The announcement of layoffs at Nike's FuelBand business caught many by surprise -- and it's a bold move considering the product's success -- but this is part of a bigger move for Nike. The company will continue to make software in an effort to increase the prevalence of its Nike Fuel metric, and is launching an API for use on other hardware. 

Google is modifying Android for wearable devices, and Apple has long been rumored to be interested in wearables. What's notable here is that Apple's CEO Tim Cook also sits on Nike's board of directors, so there may already be collaboration between the companies that isn't public yet. 

The bottom line is that Nike getting out of devices isn't as big a deal as it initially appears. Many of the capabilities currently available on the FuelBand will just be transferred to new devices. Travis Hoium gives his opinion on the move in the video below. 

Here's the biggest thing to come out of Silicon Valley in years, but Apple isn't the best way to play it
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

The article Nike Was Right to Kill the FuelBand originally appeared on

Travis Hoium manages an account that owns shares of Apple. The Motley Fool recommends Apple, Google-Class C Shares, Google (A shares), and Nike. The Motley Fool owns shares of Apple, Google-Class C Shares, Google (A shares), and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story