Apple Watch Puts Pressure on the Swiss Watch Industry

The industry sold significantly fewer wristwatches in 2019. In contrast, according to a consulting firm, sales of the Apple Watch have grown rapidly.

By contrast, sales of the Apple Watch grew by 36 percent to 30.7 million last year, according to a report.

The Apple Watch is more  difficult for the watch industry in Switzerland. According to a report by the British consulting firm Strategy Analytics, the entire Swiss watch industry sold only 21.1 million wristwatches in 2019, 13 percent less than in the previous year. Apple Watch sales, on the other hand, grew by 36 percent to 30.7 million last year.

According to a report by the British consulting firm Strategy Analytics, the entire industry sold 21.1 million watches in 2019, down 13% from the previous year.

“Traditional Swiss watch brands such as Swatch and Tissot are losing the connected watch war,” analyzes Strategy Analytics. The Apple Watch offers a better product through highly branched retail channels and appeals to young users, who are becoming increasingly popular with these digital objects, according to the British consultancy.

The era where Swiss watchmakers could have an impact on the connected watch sector is drawing to a close. “Time is running out for Swatch, Tissot, TAG Heuer and others,” reads the report.

Apple had revenue of € 24.7 billion in the wearables department in 2019, which also includes products like AirPod headphones and HomePod speakers.

“Traditional Swiss watchmakers like Swatch and Tissot lose the smartwatch war, “says one blog entry Strategy Analytics. The Apple Watch book ” a better product thanks to deeply connected distribution channels “and target young consumers who are increasingly digital wristwatches wanted to. The period during which Swiss watch brands Connected watches could leave an impression, expire. ” The
Time may be running out for Swatch, Tissot, TAG Heuer and others.” In terms of sales, Switzerland should always be ahead of Apple clearly ahead because high-priced luxury watches are currently sell well around the world. In 2018, Swiss watches exported The equivalent of 19.8 billion euros. The official value for 2019 is not yet available, but should c ross the threshold of 20 billion euros.

Apple sold “Wearables” in 2019 equivalent to 24.7 billion euros. About this field of activity but also include other products such as popular AirPods headphones  and HomePod speakers. Upheavals in the The Swatch Group is particularly affected by the watch industry. To that
The group includes luxury brands like Breguet, Blancpain and Omega, however also brands that target audiences with lower purchasing power, such as Tissot, Calvin Klein, Swatch and Flik Flak. The entry-level segment, which looks at a retail price of up to CHF 500 and an export price up to 200 francs, report Watson.ch measured in terms of quantities 56 percent of the volume of exports. at
However, this segment only has a total value in Swiss francs 4.1 percent share.

 

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Summary

The industry sold significantly fewer wristwatches in 2019. In contrast, according to a consulting firm, sales of the Apple Watch have grown rapidly.

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