Apple and Nike Deal Tomorrow?

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May
22

By: switchtoamac at: 6:08 PM on May 22, 2006 | Comments (3)

Rumors are that Apple and Nike will be announcing some sort of deal tomorrow.  I just saw the news on CNBC's "On The Money" television program.  They also mentioned that Lance Armstrong is scheduled to be at the news conference tomorrow.

What could the two companies do to leverage each other's unique capabilities?  Apple's strength is in the portable music device and music sector, specifically the iPod and iTunes.  Nike is a leader in the sports sector with products that range from shoes to apparel.  What could the two companies have planned?  If the news from CNBC is accurate, we’ll know tomorrow.

In my view, Apple is making attempts to penetrate as many consumer segments as possible.  Taking this into context, Apple's goal must be to expand it's brand visibility and scope.  Most likely in an effort to get more people to eventually make the switch.

I bring this up because of two reasons.  One is the Switch to Intel processors.  Although Apple claimed that the switch to Intel was driven by a "Performance per Watt" perspective, I stated the following in a post titled Apple Intel and Increased Market Share:

"Although true, the reason to go with Intel reaches far beyond performance metrics.  Apple's decision to use Intel microprocessors was a strategic decision to expand it's user base, to capitalize on notebook sales, and most importantly, to increase it's market share."

The second reason is to capitalize on the recent "Get A Mac" advertising campaign which is now available on television and numerous web sites.  Apple will grow its market share by taking away customers from Dell and PC vendors.  The recent MacBook release will allow Apple to capitalize on the growing popularity of its brand and current market buzz.  Apple will capitalize on the growth in notebook sales as market data demonstrate that notebooks now outsell desktop systems.

Partnerships with popular name brands such as Nike will help Apple reach these goals because partnerships will expose the Apple brand to a larger number of consumers.  More details to follow if/when they become available.

Updates:

5/22/2006 

  • Apple COO Timothy D. Cook joined the Nike Board of Directors in November 2005
  • The Yahoo Finance Apple message board also makes a mention of the CNBC news.  An exact post can be found here.

5/23/2006

3 Reader Comments

Perhaps this has something to do with the upcoming soccer World Cup

The Shuffle is getting old and hasn't been updated in a while. I could see an iPod Sport iPods to replace the Shuffle

Nike and Lance Armstrong?

I have a Lance 4, which is a Nike watch. It costs a lot more than a similar Nike watch (some of which goes to Lance's charity), has Lance's signature on the back, comes in titanium instead of aluminium and the bubble is yellow.

A signed, titanium iPod Nano in a yellow Nike armband?

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