The Federation of the Swiss Watch Industry (FSWI) has announced today that for the first time since 2009 exports of traditional timepieces are down, and it looks like Apple Watch is to blame.
Wristwatch exports from Switzerland fell almost 9 percent between April and May, according to the FSWI numbers. The news comes on the heels of the launch of Apple Watch on April 24th, which combined with fluctuating currency markets to cause the industry’s first slump in over six years.
“Watch exports to the U.S. in the lower price segments could also have had some negative impact from the launch of the Apple Watch,” analyst Patrik Schwendimann told Bloomberg. The U.S. market might only grow by a low single-digit percentage this year, slowing down from 6 percent growth in 2014, he said.
It’s not just exports to the U.S. that are slowing down, either. The report shows a 34 percent decline in Hong Kong, where Chinese consumers frequently buy timepieces to take advantage of lower taxes. Fewer working days were had in May compared to last year, so that could have contributed to the drop, too.
The Apple Watch definitely appears to be at least a part of the equation that is eating into the Swiss watch business, and it could get worse. Local business expect to take a hit once Apple Watch goes on sale on June 26th.
Evan Killham is a freelance writer who lives in Nebraska and isn’t interested in football, so he has plenty of time to play and think about video games. He has written for Bitmob and GamesBeat and sometimes, he even goes outside. But not too often because he’s heard there are bees out there. Occasionally, companies send free units for review. Evan subscribes to Cult of Mac’s Reviews Policy and also does not keep the items he receives for possible coverage.
23 responses to “Apple Watch launch puts Swiss Watch exports in a slump”
Apple will destroy the market if they released a cheaper Apple Watch c model (Like iPhone c).
Or just wait for the second gen to get released so the first gen is cheaper..
Will be interesting to see the depreciation on these devices. Some of the older smart watches on the market can often be found on sale for around $50 when they initially were $300+/-. I’d speculate the current Apple Watch will depreciate 50% when the next model comes out (this excluded the Edition models). Bands may retain their value if they can be used on next gen Apple Watch.
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The iPhone C really didn`t do much to be frank. Apple does not like releasing anything cheap (from a monetary standpoint). Get the consumer to keep opening up that pocket book year in and year out for one or two more features.
It is the bane of the consumerist nightmare. ALA, the cult of the latest and greatest.
Thing the big difference between a cheaper Apple Watch and cheaper iPhone is you end up paying the same monthly cellular service plan fees regardless of what phone you have. Where as a less expensive Apple Watch is independent and has a stand alone price.
I think they will release a cheaper version now that they have had time to ramp up the supply chains and production capability since demand for a sub $300 Apple Watch would be immense IMO.
“Apple Watch launch puts Swiss Watch exports in a slump”
Now who in the world could have predicted that? :)
Blackberry.
Blackberry? Blackberry. Hmmm, don’t quite remember that one. A fruit? Oh riiiight, that phone people used to use.
Because the Swiss watchmakers have not innovated. Maybe they should go with Android, yeah, that’s the ticket!
Isn’t it a bit of a leap to discount the shorter month and currency exchange effects in order to attribute the monthly drop to Apple?
Either way though this is likely to be good news.
People dumb enough to substitute the style of a Swiss timepiece for such a garish fashion statement have no place wearing the former.
Also, I suspect any such numbers are balanced by purchases from a more discerning set, seeking to distance themselves from fugly gadgets.
I bought the Apple Watch Sport, it’s a great timepiece, the screen is awesome. I would’ve never spent over $500 on a Swiss watch that just tells the time, to me that is pointless. It’s light, has lots more features and is really comfortable on the wrist. I can see why you would choose this over any overpriced single featured watch. I did recall the Swiss saying “We welcome the competition, blah blah blah” but now reality has sunken in.
Maybe something to do with the fact that in less than a year it will be outdated, the battery will degrade over time (unless apple has some scheme to service the batteries) and in a number of years (or maybe less) the watch will be completely defunct. Compare this to high grade swiss watches which, although they do only tell the time or have a limited number of simple features, will, even over a couple of decades, will not become defunct or even depreciate that much (past the first couple of years).
Small price to pay for about 100+ more features, I always sell my Apple gear one year after buying it and get about 75% back so upgrading to the latest is still a drop in the ocean in comparison to a swiss watch. Each to their own I guess. The joy of consumer choice I guess.
100+ features you probably will never use, or if you did, they would be 100 times better using your iPhone.
The Swiss watch will hold its value. Your Apple Watch will be worthless in a few years.
I played with a Watch at my nearby Apple store recently. Beautiful, very cool, much nicer than I expected. But difficult to use and pretty close to useless without my iPhone. it will never replace my old-school Swiss mechanical watches that will last for generations without needing charging, which will never be obsolete and which do not need any other device to perform its principal function.
“But difficult to use and pretty close to useless without my iPhone.”
Interesting. One thing I’ve •never• heard, read or personally experienced about the Apple Watch is that it’s hard to use.
With regard to being “useless without my iPhone”… it was specifically designed and •intended• to be used with the iPhone. If you bought it thinking otherwise, you’re not quite as smart as either device, and your Swiss watch will indeed serve you better.
Many young people do not wear watches anymore.
I’m not young, at all, though I have not worn a watch in over 10 years … maybe I’m young at heart!
I think the claim that the Apple Watch is the reason for swiss watch export slump is exaggerated…It may have a small impact, but the biggest impact really, is the strength of the Swiss Franc.
IDK, the iPhone destoryed RIM/BB and Nokia … and the iPad also help to reduce the Sweedish (iirc) paper business … they (the Sweeds) do complain some, but it makes sense.
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