Apple and Nike shares rise folowing Nike+iPod announcement

“Long used on the run, Apple Computer’s iPod soon will be customized for runners. As part of a deal announced Tuesday with Nike, the company will soon release a kit that will essentially allow the digital music player to function as a pedometer, giving runners information on the distance they’ve gone, the calories they’ve burned, and the length of time they’ve been running. The kit will include a wireless antenna that will connect an iPod nano to specially designed Nike shoes,” Troy Wolverton reports for TheStreet.com.

“The deal with Nike is one of the first efforts to connect the iPod to a nontraditional electronic device. In addition to the pedometer information, the Nike+iPod kit from Apple will include software that will allow customers to designate a “power song” that they can play at the touch of a button during workouts, and to set up customized song play lists for use with particular workout routines. As part of the deal between the two companies, Apple plans to add a sports music section to its iTunes Music store,” Wolverton reports. “Shares of Apple and Nike both rose following the announcement. In recent trading, Nike’s stock was up $3.03, or about 4%, to $81.01, while Apple’s stock was up 67 cents, or about 1%, to $64.05.”

Full article here.

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Related articles:
Analyst: Nike+Apple = iPod as a platform – May 23, 2006
Nike and Apple team up to launch Nike+iPod, footwear that talks to your iPod – May 23, 2006

12 Comments

  1. Hmmph. Niche marketing. Almost sounds like an April Fools joke. I wonder if Apple can afford the loss of efficiency in it’s production network by expanding into niches such as this.

  2. Niche marketing my ass. This is the sort of stuff that locks out the competition. Just knowing that something you value is, or perhaps soon will be, accessible only through the iPod will chill the sales of alternative products.

    And note the wireless connection. You can bet that other applications will be forthcoming on the iPod. The iPod ecosystem just got a giant boost.

    I will not be scared off my AAPL holdings by bear raiders spewing “Apple is sinking” crap.

    I have never seen a major company like Apple with such spectacularly great prospects.

  3. to the “Niche Market” thinkers….

    It isn’t a “niche” when the second most popular use for your product is as a workout tool. The nano was expressly deisgned to be the workout person’s dream because it is Flash based and so darn small & light.

    Many people have also missed the iTunes tie in with the Nike workout playlists.

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