BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Apple Watches Outsell Entire Swiss Watch Industry, But Don’t Ring The Death Bell Yet

Following
This article is more than 4 years old.

It was mid-summer of 2019 when a host of specialty watch and business publications were noting how Apple watches were well-poised to best the entire Swiss watch industry in sales (in number of units) of Apple watches. That prediction has come to fruition.  As so many of today’s active watch wearers turn to the Apple digital smart watch to do a lot more than just tell time, it seems Apple Watch sold more timepieces in 2019 than the entire Swiss watch industry. 

According to a report by Strategic Analytics, Apple shipped 30.7 million units of smart watches worldwide in 2019 compared to 21.1 million for all Swiss watch brands combined. According to the Federation of the Swiss Watch Industry (FH), Swiss watch exports have been on the rise, but in no way compare to the big numbers of the Apple watch sales. The Swiss watch industry can’t possibly generate the same output in terms of unit sales numbers that Apple can. By and large (except for the monster brands like Rolex and TAG Heuer), it is still considered a carriage trade. The industry does, however, reap higher numbers in terms of value, especially thanks to the luxury end of the Swiss watch market.

Still, with the Swiss watch industry witnessing the growth of the Apple Watch for the past five years since its inception in 2015, certain Swiss brands made a concerted effort to combat Apple by introducing smart watches of their own – some of which are hybrids that combine mechanical watches with connected options.  Brands creating such products today include TAG Heuer, Tissot, Frederique Constant, Movado and others. 

The venture into smart watch technology by the Swiss watch industry was a reaction not only to the Apple Watch, but also to the industry’s history. Back in the 1970’s and early 1980’s, the Swiss watch industry was slow to believe in and embrace quartz technology – believing serious watch lovers would never own a battery-powered watch when they could have fine mechanics. By the early 1980’s, the industry realized it should have embraced the concept, as consumers flocked to the easier, no-need-to-wind mentality of the quartz watch.  The Swiss watch industry suffered significantly and was only able to power back into the playing field after an intense financial rescue and the development of its own quartz movements. 

So, when the first Apple Watches began appearing on the scene, traditional watch brands recognized a need to be a part of the new trend sooner rather than later (as in the quartz era).  The goal of the Swiss watch brands jumping on the connected technology was not to clobber Apple Watches in any way. It was to be in the game, rather than spending a decade playing catch up as in the quartz era.

While many technology pundits are claiming that Apple Watch’s sales of more units than the Swiss watch industry units signals the “death” of Swiss watches, most watch industry pundits beg to differ. It should be noted that by a decade or so after the quartz watch crisis, both types of movements (quartz and mechanical) were able to co-exist on the market, with consumers seeking out what they liked best.

Today, just like there were takers of quartz, there are takers of Apple. Granted, today’s on-the-go younger consumer of the smart watch will continue to purchase newer and newer versions of the Apple watch, but as they progress in life, they will most likely also be looking to the watch as a status symbol and begin turning their attentions to fine Swiss watches.  

Additionally, as we have witnessed, there remains a very strong love globally for fine Swiss-made, high-horology watches – thanks in part to the avid watch collectors and to the internet, which provides easy access to information.  Such information includes watches that hold their value, increase in value and even become heirloom pieces – something a smart or connected watch, including Apple Watches, will never do.  And, as more and more watch lovers and collectors set their sites on owning “Holy Grail” watches and on buying timepieces that will hold and increase in value, we will see continued sales of new high-horology watches, as well as of vintage timepieces at auction.

Yes Apple Watches may have outsold the Swiss watch industry in terms of units, but there is no death bell in site for the near 600-year-old Swiss watchmaking trade.   

Follow me on Twitter or LinkedInCheck out my website