Wearable technology has a bright future in the world of contactless payments. Even though these accessories are somewhat appreciated by the general public, they are not the fashion trend some companies were hoping for. Intel is cutting down staffers in its wearables group, as they are seemingly prepared to focus attention on other projects.
Intel Sees No Big Future For Wearables Right Now
It is rather surprising to learn that Intel is cutting back on its wearables division. Even though a lot of people were not even aware that the technology giant created these devices, they have been doing so for quite some time. Intel acquired Basis in 2014, which is a producer of high-quality fitness wearables. At that point, the move was believed to be part of a bigger plan to compete in the wearables sector.
That was not the only acquisition Intel made, as they purchased Recon in 2015. Recon is another company active in the wearables industry, with a large focus on sports accessories. Intel CEO Brian Krzanich was very keen on exploring wearables when both these acquisitions were made, but it seems something has changed since those decisions were made.
After being forced to recall some of their wearables, it became apparent that Intel had a very long and challenging road ahead of them. The recalled devices were not replaced either, and the entire line of Basis Peak accessories ceased to exist. Moreover, the software support for these devices will be shut down by the end of the year as well.
As is the case with any technology giant, investments are made at opportune times. Unfortunately, not all of these financial efforts pay dividends over time. Intel seems more than willing to write off their wearables venture altogether, starting by laying off the majority of its team active in this sector.
This news comes at a troublesome time, as Christmas is just around the corner. Several company employees have been warned about this change in direction, and many jobs will be axed before year’s end. No information was provided regarding any severance packages to ease the burden of untimely job losses.
It must be said that being successful in the wearables industry is anything but straightforward. Very few companies manage to deliver a product that consumers want to own, let alone continue to improve the hardware and software side of things. It remains anybody’s guess whether or not wearables will ever become a mainstream trend, but for now that doesn’t appear to be the case.
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