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I'm seeing this from the bottom up in other areas. The general question being asked is "Isn't this actually just an app? Do we really need the device too?" And

I'm seeing this from the bottom up in other areas. The general question being asked is "Isn't this actually just an app? Do we really need the device too?" And very often the answer is it's just an app. The Google coming in factor is not to be underestimated, however, what appears to be going on there is Google effectively ensuring no one (except Apple) gets to make money on wearable hardware. Apple will steal the premium sector, again, (mix of iOS compatibility, prestige branding and likely a couple of out there features) but because Google seem to view it as a way to attach Google Now to your wrist first and potentially profitable app ecosystem very distant second they'll drive the price of the hardware down to the point Nike's decision here looks very wise indeed. The ad/search business is to Google what Windows is to Microsoft, and in order to create new profit centres they really need to forget it.

nanowatcher 13y ago
You're reasoning is completely off. Google's Android wearables ensures nobody makes money on wearable OS i.e. software. Google has actually opened the door for companies to now make money on the wearables hardware since the software is standard. While Google launched wearable by focusing on the Now integration, there are still hints that fitness apps will be there at launch of the smartwatches. This is the first time Google and Apple are launching in a new category at the same time, it's a bit premature to conclude that Apple will capture the high-end (although they do have iOS customer captive in their ecosystem) Nike doesn't figure into this at all. The fuelband never even worked with Android devices (Tim Cook holding a spot on the Nike board for the past 9 years might do something with that). Mike's play is to get out of the wristband business before Apple jumps in while keeping their Nike+ integration with Apple via software and SHOES (Nike's real business) as done previously. However if this new upcoming Nike+ API can be used by Android devices it would represent the first real shift in Nike's strategy
- lnanek2 13y ago
  Honestly, Google does prevent almost anyone from making money off the hardware as well. I was at an Android OEM when Google first started sourcing their own Nexus line at cut throat prices and Android hardware projects were definitely canceled because we just couldn't compete with Google. Samsung is about the only one that can since they have massive economic advantages due to making most of their own parts. Other Android OEMs make very little numbers or profit.
  - w1ntermute 13y ago
    Hardly any consumers know about the Nexus line. I'd say that's the last thing an Android OEM should be worried about. The biggest problem is consumer awareness (the same problem the Nexus line faces), especially when the carriers are in control, like in the US.' Unfortunately, using Samsung's approach of overwhelming the public conscious with advertising isn't feasible for a lot of smaller OEMs, who don't have the sort of capital necessary to do that. However, signs of hope are developing, if you take an ultra-lean approach to producing and selling the phone[0]. 0: http://www.theguardian.com/technology/2014/apr/01/moto-g-boosts-motorola-mobile-smartphone-sales http://www.theguardian.com/technology/2014/apr/01/moto-g-boo...

nanowatcher 13y ago

You're reasoning is completely off. Google's Android wearables ensures nobody makes money on wearable OS i.e. software. Google has actually opened the door for companies to now make money on the wearables hardware since the software is standard. While Google launched wearable by focusing on the Now integration, there are still hints that fitness apps will be there at launch of the smartwatches. This is the first time Google and Apple are launching in a new category at the same time, it's a bit premature to conclude that Apple will capture the high-end (although they do have iOS customer captive in their ecosystem) Nike doesn't figure into this at all. The fuelband never even worked with Android devices (Tim Cook holding a spot on the Nike board for the past 9 years might do something with that). Mike's play is to get out of the wristband business before Apple jumps in while keeping their Nike+ integration with Apple via software and SHOES (Nike's real business) as done previously. However if this new upcoming Nike+ API can be used by Android devices it would represent the first real shift in Nike's strategy

lnanek2 13y ago
Honestly, Google does prevent almost anyone from making money off the hardware as well. I was at an Android OEM when Google first started sourcing their own Nexus line at cut throat prices and Android hardware projects were definitely canceled because we just couldn't compete with Google. Samsung is about the only one that can since they have massive economic advantages due to making most of their own parts. Other Android OEMs make very little numbers or profit.
- w1ntermute 13y ago
  Hardly any consumers know about the Nexus line. I'd say that's the last thing an Android OEM should be worried about. The biggest problem is consumer awareness (the same problem the Nexus line faces), especially when the carriers are in control, like in the US.' Unfortunately, using Samsung's approach of overwhelming the public conscious with advertising isn't feasible for a lot of smaller OEMs, who don't have the sort of capital necessary to do that. However, signs of hope are developing, if you take an ultra-lean approach to producing and selling the phone[0]. 0: http://www.theguardian.com/technology/2014/apr/01/moto-g-boosts-motorola-mobile-smartphone-sales http://www.theguardian.com/technology/2014/apr/01/moto-g-boo...