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Fossil withdraws from smartwatch market, yielding space to tech giants

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Fossil Group, an American watchmaker, has decided to cease production of smartwatches, marking the end of its efforts to introduce stylish tech timepieces to the market.

The company announced on Friday that its latest Gen 6 watch, utilizing Google's Wear OS software, will be its final foray into the smartwatch category. Fossil's departure comes as the landscape has shifted, with tech giants such as Google and Samsung dominating with their own branded devices.

A spokesperson for the Texas-based firm stated, "We have made the strategic decision to exit the smartwatch business and redirect resources to our core strengths."

Sub-brands under Fossil, including Michael Kors, Skagen, and Diesel, will also discontinue their smartwatch lines. The company has committed to providing support for existing models for a limited period.

Fossil had been among the few traditional watchmakers attempting to adapt to the emerging smartwatch trend over the past decade, despite the neglect of the struggling Wear OS platform by major players. However, the category gained traction in 2021 when Google and Samsung collaborated on a significant software update.

Industry analysts suggest that Fossil struggled to compete with the marketing power and resources of tech giants. The lack of a new smartwatch model since 2021 signaled the company's gradual withdrawal.

Fossil was known for its focus on fashionable design in the smartwatch space. With its departure, there is an opportunity for other players to step in and offer sleek, designer tech watches.

In the meantime, Fossil intends to focus on its traditional watches, jewelry, and leather goods. Despite the mainstream popularity of smartwatches, traditional timepieces still constitute the majority of Fossil's business.