By: Staff and Wire Reports

May 24, 2006, Austin American-Statesman

SAN JOSE, Calif. — Nike Inc. and Apple Computer Inc. are joining to make more money at the intersection of technology and exercise.

The companies announced Tuesday that they are jointly developing a wireless system so that some Nike shoes embedded with a sensor can communicate with Apple's iPod Nano music player to track a runner's performance and help choreograph songs to the moment.

The Nike+iPod Sport Kit will be available in two months for $29. It comes with a sensor that fits inside compatible Nike footwear — sold separately — and a wireless receiver that attaches to the iPod. The $100 Nike+ Air Zoom Moire shoe will be the first footwear designed to talk to the iPod, but more are planned.

"They're not launching it as an incredibly expensive item," said Tim Calkins, a marketing professor at Northwestern University's Kellogg School of Management.

The product got an endorsement from Tour de France champion Lance Armstrong, who plans to run in his first New York marathon later this year.

"It will take working out to a whole other level," said Armstrong, who has an endorsement contract with Nike and appeared at the New York launch.

Data on running time, distance, pace and calories burned would be stored on the iPod, which then could display the information on its screen or deliver it audibly through headphones. After a workout, the data also could be automatically sent to a personal runner's log at the new nikeplus.com Web site whenever the music player is connected to Apple's iTunes program.

The iPod also will incorporate a "Power Song" feature, which will allow a user to instantly queue up a piece of music for extra motivation at the push of a button.

The product joins two of the biggest names in consumer products — Apple and Nike. It also focuses on a lucrative niche that marries computer technology and hobbies, such as music and exercise.

The iPod already is standard equipment for many runners, along with various high-tech devices such as GPS-enabled watches and heart-rate monitors, which Nike also sells. A year ago, Adidas incorporated a microchip into a $250 pair of shoes to customize cushioning based on a runner's body and the terrain.

Various companies are trying to combine one or more of the devices with their products: Oakley Inc. sells sunglasses that incorporate an MP3 player; Austin startup Bones in Motion Inc. married GPS service and a cell phone to help runners track their performance.

But the Apple and Nike combination promises huge star power.

"These are two of the strongest consumer-marketing companies in the world with very defined brand images and very well-built brands," Calkins said. "I'm not sure in the long run they're going to be great partners. Who controls the message?"