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"The agenda isn't to sell FuelBands," said Jim Duffy, a Nike analyst with Stifel, Nicolaus & Company, on Nike's wearable focus. "It's to develop this customer database and pool of customers that they can have a dialogue with..to make people more active and thus increase demand for core products."The discussions at Nike, which released its next generation FuelBand last November, took place in recent months, said the person, who asked not to be named because the talks were confidential. At one point, the decision was made to officially cease wearable hardware development, though that may have changed since the discussions were initially held and deliberation may be ongoing, the person said.

A Nike spokesman said the company had no further comment to provide, The possible move out of hardware comes at a time when existing mobile device makers are looking to the wearable market for new opportunities, Google's Android Wear -- an operating system designed for wearable devices -- has attracted a bevy of partners, including Motorola and Fossil, which have both announced Android Wear-powered smartwatches, Samsung, which introduced its first smartwatch last year, continues to update its Gear snowy owl iphone case watch line and its Gear Fit wristband, Apple will reportedly enter the wearable market later this year with a smartwatch dubbed the..

Teaming up with Apple as Nike did in 2006 to launch its Nike+iPod running tracker -- the first tech leap from the sportswear company that kicked off a substantive shift in its branding strategy -- is a tried and true collaboration. "That could be a very fruitful partnership," said Faye Landes, a Nike analyst for Cowen and Company. Apple declined to comment for this story on its relationship with Nike regarding wearables. "Do I think Nike will be in this [the wearable device] business five years for now? They'll definitely be in the Nike+ business because of that install base," said Landes.

As of August 2013, Nike said it had 18 million users on its Nike+ platform, Today, Nike announced that the platform has grown to 28 million users since then, The FuelBand was released in February snowy owl iphone case 2012 to large demand and strong reviews, Nike also earned raves in November 2013 with its SE upgrade, But the fate of Nike+, the software crux of the company's digital fitness efforts, was in a far less favorable state back in the fall of 2011, "Just like you, we hold ourselves to incredibly high standards, and right now Nike+ isn't living up to them," wrote Jayme Martin, the company's then-VP and general manager of Nike Running, in an apology letter over Nike+'s mounting issues, from syncing problems and login failures to general site slowness..

With the FuelBand -- which compressed all the bells and whistles of higher-end fitness devices, like step-counting and calorie burn, into an affordable and sleek form factor -- Nike turned its product efforts around. Not only did it punctuate the technical overhaul of its Nike+ platform with a device fitness junkies had been clamoring for, but the athletic shoe seller catapulted itself to the front lines of the fitness device arms race. The FuelBand became the poster child for new lifestyle products revolving around a wrist-based device capable of capturing user-generated data, as well as the services that orbit around that activity. More FuelBands sold meant more users for Nike+ and more potential buyers of Nike's core products.

"The FuelBand was the opportunity for them to demonstrate some innovation in a category that needed that," said Sean Naughton, a Nike analyst snowy owl iphone case with Piper Jaffray, "Ultimately for Nike, it's about being able to leverage the data and the information they have out of that community of users to sell more footwear and apparel -- and to create and deliver products that the customers are interested in."That strategy seems to be paying off, Not only does Nike+ now have more than 28 million users, but Nike is now beginning to expand its offerings, with iOS and Android apps like its workout training app for women, N+TC, and Nike+ Move, an exclusive iOS app that takes advantage of the iPhone 5S's M7 motion processor to collect much of the same data a FuelBand does..

The company has its sights set on leading with software, making its FuelBand and smartwatch efforts that much more peripheral to delivering on what those devices were meant to facilitate in the first place: a Nike ecosystem that starts with the apps on your phone and ends with the shoes on your feet and the shirt on your back. Now that smartphones can do much of the intensive tracking these devices used to do exclusively, it's no longer necessary to have a fitness tracker to remain relevant in wearables. Take, for instance, not only Nike+ Move, but also fast-growing communities like MapMyFitness, which was purchased by Under Armour last year for $150 million.

"What these type of activity tracker devices do is solve one of the big problems that brands have, which is how do you engage with an individual in a personal way," said Credit Suisse analyst Christian Buss, who follows Nike, "It's different than just building a brand preference, 'This is your activity partner.' That's a very different relationship."To that end, Nike likely sees its proprietary workout measurement metric, NikeFuel, and a fitness lifestyle brand built around it as more valuable than the chance to sell consumers a $150 device that hardly moves the needle on Nike's $27 billion in snowy owl iphone case annual sales..



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