L2 Founder Scott Galloway spoke on Bloomberg TV today about Nike’s potential closing of its FuelBand division. Galloway likened the device to PointCast, which many had installed on their computers in the 90’s and later uninstalled. Nike’s decision has implications for makers of all wearable devices, such as Jawbone and Fitbit, because a major player is questioning the viability of the industry for the first time. Nike’s inability to succeed in wearables confirms the fear that devices are being stashed away after a few uses. It also proves consumer companies lack expertise to make wearable technology. A broader implication is the indication that the enthusiasm for wearable tech could have been a bubble.
However, Galloway said Apple could be successful if it enters the wearables market as a luxury player. The iPhone has all the characteristics of the perfect fitness tracking device, and any additions are extra unless they are branded as luxury items. See full video here.