Under Armour Inc (NYSE:UA) and Taiwanese smartphone company, HTC, are moving to implement their partnership announced earlier this month. HTC is said to be developing its flagship smartwatch that will link with Under Armour’s fitness apps and services. In addition to the smartwatch, HTC is also expected to release an enhanced smartphone at the upcoming Mobile World Congress in Barcelona.
Under Armour Inc (NYSE:UA) and HTC announced this month that they were collaborating on a number of products, mainly on the fitness segment. According to the people with insider knowledge, HTC is developing a smartwatch that will allow users to have easy access to the fitness apps offered by Under Armour.
Fitness apps and devices are popular
Studies have shown that the popularity of fitness apps and gadgets is growing rapidly. For instance, in 2014, health apps increased at a rate of 87%, which was faster than apps in other industries. The popularity of health and fitness apps is opening new revenue opportunities for innovative companies such as Under Armour Inc (NYSE:UA).
The company has made interesting moves in the tech fitness market in the recent times. In 2013, Under Armour released a fitness tracker known as Armour39. In the same year, the company spent $150 million in the acquisition of a maker of health apps known as MapMyFitness.
The release of HTC’s smartwatch is expected to boost Armour Inc (NYSE:UA)’s campaign in the tech fitness market. The release of the smartwatch is also expected to help HTC arrest its falling sales.
In addition to a smartphone, HTC is also expected to release an improved smartphone, with featured enhanced camera and audio capacities.
Good performance in the US
Under Armour Inc (NYSE:UA) has now overtaken rival Adidas as the No. 2 provider of sportswear in the U.S. market. The company sold apparel and footwear valued at $2.6 billion in the 11 months period that ended on January 3. That compared with sales of $1.6 billion for Adidas in the U.S. over the same period. Nike Inc (NYSE:NKE) remains the market leader with sales of $11.8 billion in the U.S. for the same period.