Prolific watch brand Fossil has announced that it will discontinue introducing any new smartwatch models and would officially exit the segment. The move was confirmed by company executive vice president and chief operating officer Jeff Boyer in a statement to The Verge.
“As the smartwatch landscape has evolved significantly over the past few years, we have made the strategic decision to exit the smartwatch business,” Boyer told the publication. “Fossil Group is redirecting resources to support our core strength and the core segments of our business that continue to provide strong growth opportunities for us: designing and distributing exciting traditional watches, jewelry, and leather goods under our own as well as licensed brand names.”
Despite its exit, Boyer assured that Fossil will support its existing models by continuing to release software updates “for the next few years”. On that note, the brand’s last ever smartwatch was the Wear OS-powered Fossil Gen 6 that’s released in September 2021, which later saw different variations the year after, including hybrid versions and a Razer collaborative model.
In its Q3 2023 financial report, Fossil noted that branded sales decreased 14% in constant currency due significant declines in smartwatches and leathers. The company also revealed that sales within the former segment decreased 49%, reflecting lower consumer demand across geographies and reduced marketing as compared to the prior year period.
(Source: The Verge)
