- Fossil Group is exiting the smartwatch market to focus on traditional watches, jewelry, and leather goods, citing a need to prioritize areas that offer stronger growth opportunities.
- Fossil’s exit leaves a significant gap in the Wear OS smartwatch market, potentially allowing other competitors to capture the market share left by it.
- This decision reinforces the importance of strategic evaluation of product portfolios and paying attention to online communities for insights into industry developments.
Fossil exits smartwatch market, focuses on core strengths
Fossil Group, a major player in the smartwatch market, has announced that it is quitting the smartwatch business and redirecting resources towards its core strengths in traditional watches, jewelry, and leather goods. This decision comes as the smartwatch landscape has evolved significantly over the past few years, and Fossil has deemed it necessary to exit the market.
Jeff Boyer, Fossil executive vice President and chief operating officer, stated that the company will continue to keep existing Wear OS (Android operating system) watches updated for the next few years. However, the Gen 6 will be the last Fossil smartwatch. This move reflects a strategic decision to focus on areas that offer stronger growth opportunities and align with the company’s core competencies.
Industry implications: Filling the gap left by Fossil’s departure
Fossil has been one of the most prolific makers of Wear OS smartwatches over the years, and its exit from the market will create a significant gap. The company’s absence could pave the way for other competitors to step in and capture the market share left by Fossil.
This decision by Fossil comes after months of speculation and rumors among Reddit users. Some users had mentioned Fossil’s potential exit from the business, while others speculated about the company waiting for a new chipset. The company was notably absent from this year’s CES, the most powerful tech event in the world, and Fossil was expected to announce news of a new Gen 7 featuring the Qualcomm Snapdragon W5 Plus platform in 2023, but no announcement was made.
Also read: Top 5 most exciting AI products from CES 2024
Strategic shift: Evaluating growth opportunities in traditional accessories
Fossil’s decision to quit the smartwatch market highlights the importance of paying attention to online communities for insights into industry developments. This move also reinforces the need for companies to strategically evaluate their product portfolios and prioritize areas that offer stronger growth opportunities.
It remains to be seen how Fossil’s exit from the smartwatch market will impact the industry as a whole. However, it will be interesting to observe how the firm leverages its core strengths to continue driving growth in these areas – watches, handbags, jewelry and small leather goods.
Also read: Qualcomm and Google team up to create wearable chips
