It is not a well kept secret that Apple Inc (NASDAQ: AAPL) plans to release a product that is very significant to the company’s future – the iWatch.

Apple’s Relationship With Nike and Journey Into Wearable Accessories

Apple clearly has a close relationship with Nike (NYSE: NKE). Current CEO of Apple Tim Cook has been a member of the sports company’s board longer than he has served as Apple’s CEO.

Additionally, Cook has previously expressed his interest in expanding into the wearables market. In May 2013, he stated at the All Things Digital conference that he believed that wearables would develop into a key branch of the tree for Apple. Critiquing Apple’s iGlass, he said that the idea of wearing glasses with Internet connection was strange, while “the wrist is interesting. The wrist is natural.”

In conjunction with that, rumors have been spreading that Apple’s iWatch device will debut by this fall. The device will supposedly feature more than ten sensors to track and monitor fitness and health data.
However, this is the first time Apple is venturing into the health and fitness market, and it could be a challenging task for the tech giant. This is perhaps where Nike will come in. Rumors have suggested the idea that Nike is collaborating with Apple on the iWatch. Nike’s long standing reputation and market share in the health and fitness niche would absolutely give Apple a leg up in the market.

Nike and Apple have come together to produce wearables before. The sports apparel company
utilized the M7 motion processor in Apple’s iPhone 5s, which provided Apple with an app that used
the processor when the phone was released to the general public.

Signs That Hint At A Nike-Apple Team

There were a few signs throughout the year that hinted at the two companies teaming up. The first was earlier this year, when Nike released a statement saying that it would halt its efforts into wearable hardware, and focus its efforts instead on software.

A source from CNET states that Nike would get rid of the 80 employees responsible for the FuelBand,

One week later, Nike CEO Mark Parker revealed in a CNBC interview that he is excited about what is to come in Nike’s relationship with Apple. He also confirmed that Nike’s priority would shift from hardware to software, and that it will be incorporated into Nike products as well as the products of the company’s partners.

Very recently, a source reported that Apply has hired back some of the former employees of the FuelBand team.

Such a collaboration not only makes sense given Nike’s experience in smartwatch hardware, but also as a marketing strategy. Nike’s reputation in the health and fitness market will allow Apple to market itself as a reputable maker of smartwatches, and become a big player in the ever increasing category.

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