American watchmaker Fossil Group is exiting the smartwatch market, ending its long-standing effort to bring stylish high-tech wearables to market. The company told The Verge on Friday that it has decided to stop manufacturing smartwatches. “The smartwatch landscape has evolved significantly over the past few years, and we have made the strategic decision to exit the smartwatch business,” Fossil spokeswoman Amanda Castelli said in a statement.
Castelli added that resources would be directed to the group’s core strengths. Fossil sub-brands such as Michael Kors, Skagen and Diesel will also stop selling smartwatches.
Fossil’s sixth-generation watch, launched in 2021, will be the first and last smartwatch to use Google’s Wear OS software.
Fossil’s withdrawal may not be a huge shock to people. Some Redditors posted that Fossil was going out of business, while others claimed to have “inside information” and said the company was waiting for a new chipset.
Fossil’s Market Struggles
Fossil is one of the few traditional watchmakers that has tried to adapt to new smartwatch trends over the past decade. The wearables category finally gained momentum in 2021 as Google and Samsung partnered to come up with a major software update.
According to reports, industry analysts say Fossil is struggling to compete with the marketing muscle and resources of the tech giants. The brand has not released a new smartwatch model since 2021, and there were already signs of withdrawal.
Fossil had a unique focus on fashionable design in the smartwatch space. But now that the brand has exited the market, it leaves a void that other players can fill with sophisticated designer smartwatches.
Fossil will now focus on traditional watches, jewelry and leather goods, a spokesperson said. Even though smartwatches are becoming more mainstream, the majority of Fossil’s fortunes are still made up of classic watches.
Currently, tech giants like Google, Apple, and Samsung are taking over the smartwatch world, while other brands like OnePlus and Noise are looking to solidify their position in the market.