Nike's Next Smart Watch Coming In Early 2014

Nike NKE is reportedly working on its next smart watch.

According to DigiTimes, the new wearable device will ship during the first half of 2014.

Little is known about the watch, but the report claims that it is currently undergoing a trial production run at Flextronics International.

Thus far Nike has released two smart watches: Nike+ Sportwatch GPS and Nike+ Fuelband SE. The former looks like a more traditional watch but offers a customizable display that allows its wearer to view how many calories have been burned, how many steps have been taken, etc. The GPS element (which is powered by TomTom) can detect the wearer's coordinates and provide further details.

The Nike+ Fuelband SE is more or less a bangle that is designed to encourage users to be more active by tracking their every move. Instead of merely focusing on how many calories were burned during a traditional workout, the Fuelband is intended to be worn throughout the day. Thus, if its wearer dances for an hour at a club, the user will receive information on how often and how intensely he or she moved.

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According to the DigiTimes report, Nike accounts for 30 percent of the global sports gear market. This could give the company a significant advantage over its rivals, including Adidas, which released a competing smart watch.

Adidas charges $399 for its miCoach Smart Run watch, making it one of the most expensive smart watches available.

By comparison, Nike's Fuelband retails for $149. The Sportwatch retails for $10 to $30 less, depending on the color selections.

Sony's SmartWatch 2 currently sells for $179.99 ($20 less than the initial MSRP).

Samsung's Galaxy Gear, the most hyped smart watch available, retails for $299. It has already sold 800,000 units. A new version is expected to follow in 2014.

Qualcomm's first smart watch, the limited edition Toq, sells for $349.

Tech manufacturers are chasing after the smart watch market because it is largely believed to be the next big thing. While sales are not expected to be anywhere near as high as smartphones, DigiTimes said that total smart watch shipments could reach 24.15 million units in 2016.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ