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Did Apple Watch save the Swiss Watch Industry?
Being a fan of all things mechanical and analog, it shouldn’t surprise anyone that I immensely appreciate watches. I particularly appreciate the work of Grand Seiko watchmakers. I have struggled to embrace the Apple Watch fully, as I like wearing my beloved Grand Seiko. None of my friends have such problems — they are all in on Apple’s wrist computer. And like everyone else, I thought Apple Watch would impact the watch industry, but I didn’t see this twist in the tale.
According to investment bank Morgan Stanley estimates, in 2020, the Swiss watch exports were around $18 billion and $24 billion in 2021. The exports went up to $26 billion in 2022. Apple is estimated to have sold between $14 billion to $18 billion worth of watches in 2022.
In 2022, the FH reported that Swiss exports totaled 15.8 million units, just above the all-time low of 13.8 million in 2020. It’s nearly half of the 28 million units exported in the halcyon pre-Apple Watch effect days of 2015.
While the Apple Watch is often given much of the credit (or blame) for decimating the low end, others have taken the opposite position, instead giving the smartwatch credit for bringing attention back to the wrist. An executive I recently spoke with at Piaget for a separate story credited the Apple Watch for increasing the “wrist awareness” of consumers.
Similarly, long-time watch exec at first Jean-Claude Biver declared the Apple Watch a “crisis” for the Swiss watch industry, but eventually changed his tune, even saying the Swiss watch industry should pay Apple for every single sale it makes as a thanks for bringing awareness to the wristwatch.
That’s from an article in Hodinkee that is trying to explain why it is not only hard to buy any good watch but how much more expensive they have become. They are ludicrously expensive. At the same time, a record number of people are buying Apple Watches — the company sold 50 million units in 2022 — which means there is much less room for the Swiss giants to compete in the”volume business.”
The watch has stopped being just a watch — it is either a connected health device that also shows time & plays music. Or it is just a very expensive piece of jewelry and a symbol of advertising one’s wealth.
It seems the Swiss watchmakers have figured out that instead of trying to boost volumes, just boost the prices. And they are doing so by concentrating on the “whales” who are immune to the vagaries of real-world economics.
Whether it is Indian cricket players, American ball players, Chinese millionaires, Middle Eastern oil barons, or Crypto bros — this demographic just wants to show off their wealth. And what better way than some gaudy piece on the wrist?
June 9, 2023, San Francisco.
3 thoughts on this post
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Your article reminds me of a watch I continue to regret not purchasing–the Moser Swiss Alp Final Upgrade. I love the joke. I just thought I loved $30,000 more. Thoughts of that watch nag at me though.
I am sure the 30K you spent to buy Ethereum doesn’t bum you out as much 🤣 That said, it was quite an amazing-looking watch. Just not worth the $30k for them taking a micky out of Apple.
This was a good read, Om. I think the Apple watch attracted a whole new consumer for their watches as well as appealing to some watch collectors and those who wear watches in general. That has been good for the entire watch industry. The new and vintage watch markets have benefitted from new enthusiasts too. Just looking at the increasing values of Rolex models, the discontinued Nautilus, and other notable luxury, as well as unknown brands, during covid is eye opening. Watches became solid investments, and the trickle down is real.
I joke here, but Apple is missing out on some of the profiting by not offering precious gem encrusted, platinum and solid gold ridiculousness we see all over the watch sites. There’s a huge market for over the top and not necessarily beautiful out there. I’m not impressed at all by excess on full display. It’s made wearing anything nice on your wrist a target for brazen and sometimes violent thieves.
I buy vintage watches. Mostly tool watches, i.e. divers, explorers, and chronographs. There are many “lost brands” that did not survive the quartz crisis in the early 80’s that are worth searching out. Some of these brands have been resurrected. Many of my watches have development history that involved exploring mountain tops, the planet’s poles, and the depths of the oceans. The 1957-58 International Geophysical Year factors heavily and has spurred collecting old books, periodicals, documents and maps pertaining the explorations that resulted.
While I am a fan of Apple, I am not a fan of being connected 24/7. I use my phone for calls and occasional photos. I prefer an iMac with a screen and keyboard and mouse over a laptop or tablet. I am also a fan of mechanical watches. Call me old school.
Every morning while getting dressed, I sit down and adjust the time of whatever 50+ year old watch I am wearing and put it to my ear. There’s something special about hearing this tiny mechanical wonder’s heart beat. There’s no ringtone or notification that makes me feel like that.