Fossil has been among the most popular smartwatch manufacturers. However, according to a report by The Verge, Fossil Group is exiting the smartwatch-making business. Per the publication, the company wants to focus on its “less-smart goods.” Jeff Boyer, Fossil’s executive vice president and chief operating officer, told the publication about the strategic decision on January 27, 2024.
Fossil To Focus On Traditional Watches And Jewelry
For the foreseeable future, the company will focus on traditional watches, jewelry, and leather goods under its own and other licensed brands. It is important to mention that Fossil hasn’t released a smartwatch in almost three years. The last wearable from the company, Fossil Gen 6, came out in 2021. Unfortunately, it will be the company’s last smartwatch.
Fossil Smartwatches Will Continue Receiving Updates For A Few Years
Nonetheless, Fossil says it will release updates for its Wear OS smartwatches for a few years. Over the last few years, some Reddit users have reported Fossil employees saying the company could exit the smartwatch business. Further, the company didn’t appear at the Consumer Electronics Show 2024.
Fierce Competition In The Smartwatch Market
It is important to mention that Fossil was one of the early adopters of Wear OS. However, Samsung’s switch from Tizen OS to Wear OS (2021) increased the competition. Year after year, the Korean tech giant started making its smartwatches available for a lesser price, which made users choose the Galaxy Watch over other products.
Further, Google announced its first smartwatch in 2022, which could have been another blow to the overall sales of Fossil smartwatches. What these companies had that Fossil didn’t was better smartphone integration, as they are full-time handset manufacturers. In India, the rise of companies like Boat and Noise, which sell affordable smartwatches, could have also impacted local sales.
A report from Seeking Alpha, published in Feb 2023, explained how the company’s revenues, profits, and sales went down from 2021 to 2022. Hence, all these reasons could have contributed to Fossil’s exit from the smartwatch market. It’s unclear how long existing Fossil smartwatches will continue receiving software updates.