Fossil is leaving the smartwatch market

This major shift by Fossil Group leaves many questions around what’s next for Google’s Wear OS platform. As the largest manufacturer supporting the software, Fossil has played a key role in its development and consumer reach. However, those efforts will now come to an end as the company exits smartwatches.

In making its announcement, Fossil revealed that the smartwatch market no longer fits with its strategic goals, which focus on traditional timepieces, jewelry and leather goods. While this allows Fossil to hone in on its core strengths, it means Wear OS loses a critical partner. That could pose challenges for its long term viability. 

To date, Fossil produced many of the best selling and most accessible Wear OS devices. Their departure removes the biggest proponent bringing the software to a mass audience. Without new hardware from Fossil, the options for Wear OS may become limited going forward. 

There were hints Fossil may have waited for an upgraded chip platform, but it seems market dynamics have changed too much. Their exit suggests third place status is difficult to maintain. It will be interesting to see if other manufacturers step up their support, or if Wear OS continues losing ground to WatchOS and Tizen.

How Google responds will be key – will they seek a new leading hardware partner, or refocus efforts? Fossil’s choice to exit after years of commitment shows the smartwatch race remains an uphill battle.

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