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Sales & Marketing


Intel Enlists Fossil for Fashionable Wearables

  • Written by DH Kass 1
  • September 9, 2014

Intel (INTC) isn’t about to miss the wearables wave like it did with mobile. The chip giant has struck a deal with consumer lifestyle and fashion accessory specialist Fossil Group to “further develop wearable technology for the fashion industry.”

Intel (INTC) isn’t about to miss the wearables wave like it did with mobile. The chip giant has struck a deal with consumer lifestyle and fashion accessory specialist Fossil Group to “further develop wearable technology for the fashion industry.”

Fossil, a $3.3 billion luxury item designer, marketer and distributor of fashion accessories such as watches, jewelry, handbags, leather goods and clothing sold under its own brand and licensed to OEMs, will help Intel spot trends in the wearables segment and collaborate on emerging products and technologies aimed at fashion-conscious consumers.

Last March, Fossil struck a similar research and development arrangement with Google (GOOG) to support its Android Wear mobile operating system.

The companies didn’t say if they currently were working on any wearables technology nor what kinds of products they expected their association to yield.

Intel’s interest in Fossil’s extensive distribution network, which includes department stores, specialty retail stores and specialty watch and jewelry stores in the United States and in 150 countries worldwide, has to have exerted a powerful influence on the deal. In addition to 550 company-owned and operated retail stores, Fossil maintains 25 foreign sales subsidiaries and works with a network of 60 independent distributors.

"The combination of Intel's technology and Fossil Group's ability to design innovative fashion accessories and to create, market and distribute globally is why we are confident about this initiative,” said Mike Bell, Intel New Devices Group general manager. “We are focused on identifying trends and emerging uses of technology and accelerating wearable technology innovation worldwide."

Fossil also will work with Intel’s investment organization to uncover co-investment possibilities in emerging technologies. Intel Capital already has invested in startups in the wearables space such as gesture control developer Thalmic Labs and heart rate monitor maker Basis, which it acquired last March.

"We are very excited about collaborating with Intel and working to develop the next innovation in the emerging wearable technology space,” said Kosta Kartsotis, Fossil chief executive. “Combining our fashion lifestyle brands with Intel's expertise in technology, hardware and innovation will position us to be a leader in this segment."

Fossil itself made a smartwatch in the early 2000s, but shelved the product, which was said to resemble cartoon character Dick Tracy’s famed two-way wrist radio.

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