Fossil exits smartwatch market, ceding ground to tech giants

It's the end of the line for Fossil's smartwatch experiment. The company is exiting the market after years of struggling to compete.

I tried so hard and got so far. (Image: Fossil)

American watchmaker Fossil Group has decided to stop producing smartwatches, ending its years-long endeavour of bringing stylish tech timepieces to the market.

The company said on Friday that its latest Gen 6 watch using Google’s Wear OS software will be its final release in the smartwatch category. Fossil’s exit comes as the landscape has evolved, with tech giants like Google and Samsung taking over with their own branded devices.

“We have made the strategic decision to exit the smartwatch business and redirect resources to our core strengths,” a spokesperson for the Texas-based firm told reporters.

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Fossil’s sub-brands like Michael Kors, Skagen, and Diesel will also discontinue smartwatches. The company said it will provide support for existing models for a few more years.

Fossil was one of the few traditional watchmakers trying to adapt to the new smartwatch trend over the past decade, even as big players ignored the struggling Wear OS platform. But the category finally gained momentum in 2021 when Google and Samsung partnered on a major software update.

Industry analysts say Fossil struggled to compete with the tech giants’ marketing power and resources. The company had not released a new smartwatch model since 2021, already signaling its retreat.

Fossil provided a unique focus on fashionable design in the smartwatch space. With its exit, there is an opening for other players to fill the void in sleek, designer tech watches.

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For now, Fossil says it will concentrate on its traditional watches, jewelry and leather goods. Even as smartwatches go mainstream, old-school timepieces still make up the vast majority of Fossil’s business.

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