Nike laid off part of its Fuelband fitness tracker team with plans to abandon the hardware. But did they fail? Or was competition about to get really hot in this space?

Turns out, they are repositioning themselves. And in a much better one too. The move is strategic to open up Nike software to other wearable platforms. One of them would be Apple's upcoming iWatch. The Fuelband software would get a huge boost from Apple customers with their sights set on the iWatch.

"Building on these successful products and services, Nike and Apple continue to partner on emerging technologies to create better solutions for all athletes," said Nike spokesperson KeJuan Wilkins.

The iWatch — along with the upcoming iOS 8 software for iPhones and tablets — is said to have a strong emphasis on health and fitness.