The Smartwatch Could Revolutionize the Watch Industry

Agence France-Presse reports that Swiss watchmakers are eyeing the rumored Apple smartwatch with some concern. There are already numerous smartwatches in the market, ranging from the more traditional professional tools like the Suunto and Casio offerings, to more contemporary designs which are being offered as smartphone accessories like those being offered by Sony and Pebble. But the smartwatch has not really caught on with mainstream buyers. The concern is that an Apple smartwatch might start to change peoples perception as to what a watch should be. 

Cooler than a Swatch?

A successful Apple smartwatch would not be too likely to have a significant effect on Swiss luxury watch sales. About 87% of Swiss watch exports are made up of watches priced at over US$1050 and cater to buyers looking for luxury or premium accessories. An Apple smartwatch would likely be priced much lower, most likely less than US$500, and target a wide consumer base. I do not see someone swapping a Rolex or IWC for an Apple smartwatch. At best, the watch buyer might add an Apple smartwatch to the collection, and use them for different occasions. 

However, a successful Apple smartwatch would affect lower priced Swiss watches like Swatch, as well as non-Swiss watch makers like Casio, Fossil, Bulova, Timex, Suunto and the plethora of fashion branded watches. Should an Apple smartwatch gain prominence, it should actually help boost the sales Android based smartwatches, the latter bringing smartwatches to lower and lower price points. 

Casion G-Shock GB-9000: This watch connects to your
 smartphone and notifies you of incoming calls, emails and messages. 

So while the smartwatch is not likely threaten the Swiss mechanical watch market, or higher end Japanese watch luxury models it could be devastating for low cost watch manufacturers.  More prominent companies like Casio, should make a comfortable the transition. It's G-Shock technology is sought after by buyers, and Casio is already dabbling in Android phones and smartphone connected watches. However, the companies other offerings, like its Edifice and Sheen brands would also have to make a transition, and this transition will be rougher. Suunto should also make a comfortable transition, with smartphone compatible smartwatches just adding to the company's line-up. 

But for many manufacturers of low cost watches, mainly US and Asian based manufacturers, the smartwatch could see a changing of the guard with smartphone manufacturers dominating the low cost watch market. While these companies can try to make the transition, this is a radical shift in technology and know-how. A successful Apple smartwatch will see many quartz watch manufacturers shuttering their doors.