Nike Inc. announced earlier this week that it is making running shoes that can deliver details to the wearer on demand including the distance run, running speed and the number of calories that have been burned. The information can be delivered right to the runner through a miniature iPod from Apple Computer Inc. It is estimated that 75% of runners already listen to music when they are out running. Nike's plan to tap the iPod success helped its shares rise 2%.
A new wireless system called Nike+iPod will help the instant information to be delivered to the runner. A Nike+iPod Sports Kit will be available for around $29, and will enable miniature versions of the iPod to provide the details to the runner from an attachable receiver that gets the data from a sensor in the insole of special Nike shoes. The sensor will be about the size of bubble gum, and will be usable with any compatible shoes. The new Air Zoom Moire line of running shoes are the first to include space for the sensor and Nike said more will follow soon.
Nike also launched a line of "iPod ready" performance clothing, including jackets, shirts and shorts that can hold iPods and keep wires hidden. "We share the same types of consumers (with Apple)," said Trevor Edwards, Nike's vice president of global brand management. "We know that these two brands work really well together." Apple, which has shipped over 50 million iPods, controls 77% of the U.S. market for portable digital music players according to the NPD group.
The main question however is whether or not this effort will lead to Nike selling more shoes? Analyst John Shanley of Susquehanna Financial Group doesn't think so. He admitted the Nike+iPod launch was innovative but said Nike's core base is teenage boys, and it's likely Nike+iPod won't appeal to the vast majority. "Is it going to move the needle in terms of them selling more footwear?" he asked. "Probably not." iTunes will also feature a Nike Sport Music section, which will feature playlists of well-known athletes.
Source:
Reuters
Nike also launched a line of "iPod ready" performance clothing, including jackets, shirts and shorts that can hold iPods and keep wires hidden. "We share the same types of consumers (with Apple)," said Trevor Edwards, Nike's vice president of global brand management. "We know that these two brands work really well together." Apple, which has shipped over 50 million iPods, controls 77% of the U.S. market for portable digital music players according to the NPD group.
The main question however is whether or not this effort will lead to Nike selling more shoes? Analyst John Shanley of Susquehanna Financial Group doesn't think so. He admitted the Nike+iPod launch was innovative but said Nike's core base is teenage boys, and it's likely Nike+iPod won't appeal to the vast majority. "Is it going to move the needle in terms of them selling more footwear?" he asked. "Probably not." iTunes will also feature a Nike Sport Music section, which will feature playlists of well-known athletes.
Source:
Reuters
