Software is 'bigger and bigger' deal for Nike: CEO

Nike CEO: Expanding reach of Nike Fuel
Nike CEO: Expanding reach of Nike Fuel

On the heels of Nike's announcement that it plans to discontinue production of FuelBand, its wrist-worn device, CEO Mark Parker told CNBC's "Squawk on the Street" that the company is changing its focus to software through its NikeFuel activity-tracking product and other apps.

Parker said "digital sport" is going to be integrated into more Nike products. "We think it's going to be a bigger and bigger factor in terms of experience with the products we create," he said.

Parker said Nike's goal is to increase NikeFuel users to 100 million from 30 million.

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To do that, Nike will be expanding its partnerships with companies such as its most visible partner, Apple.

"We've been working with them for a long time, and we're excited to see where that relationship goes going forward," he said.

Strikes in China

Commenting on the worker strikes in China, where more than 50,000 employees are on strike at Yue Yuen Industrial, a major Nike and Adidas supplier, Parker said Nike is monitoring the situation closely and taking it seriously.

"We feel that our source base is quite diverse," he said. "We have over 700 factories, so we feel like we're in a position to minimize the impact there."

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The next big event for Nike is the 2014 World Cup in Brazil. The company on Friday unveiled its newest line of football products in Madrid, Spain.

Parker said the World Cup always creates a big boost in sales for Nike performance products, sportswear or lifestyle products, and that they are seeing the football category continue to grow.

Even though Adidas is the official sponsor of the World Cup, Nike is well-represented, providing 10 teams and hundreds of players with athletic kits.

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"The investment is big…It's a really important way for us to connect to the sport and get insights that drive our innovation," Parker said.

By CNBC's Jessica Golden