Nike to shift focus on software, extend its partnership with Apple over mobile fitness/health tracking

Nike to close its FuelBand hardware division? No it won't!

The other day we’ve told you about the rumor involving Nike and its apparent decision to shut down the FuelBand hardware division. While that was a (semi) bogus story, some things are going on there and the world’s biggest sports equipment company is considering changes in its high tech department.

According to the company’s President and CEO Mike Parker, we’ll see Nike extending its partnerships with other companies, including Apple. In a CNBC interview, Parker noted that the company is concentrating on software development as it looks to grow the user base of its NikeFuel tracking system.

He went on to add that the goal is to reach 100 million NikeFuel users, up from the current number of 30 million. For the time being, the company will continue to sell the FuelBand SE, as well as release new colors for the wristband in the coming months.

When asked specifically whether Nike will stop production of the FuelBand and focus more on the software side, he said: “We are focusing more on the software side of the experience. I think we will be part of wearables going forward.”

In a nutshell, we’re still clueless on Nike’s plans in the mHealth market. Chances are they want to stick around but at the same time, their hardware division could be shut down as it’s facing tough competition from the likes of Fitbit, Jawbone and a number of emerging players. Instead, Nike could offer its software and make deals with Apple and other fitness tracking companies to stay relevant. We’ll see how that goes…

[Via: recode]