Apple Watch beats Swiss watch industry

The Apple Watch
    is causing more and more problems 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. Sales of the Apple smartwatch
    on the other hand, it had grown by 36 percent to 30.7 million last year.

No chance in the “smartwatch war”

“Traditional Swiss watchmakers like Swatch and Tissot are losing the smartwatch war,” says a blog entry by Strategy Analytics. The Apple Watch delivers “a better product through deeply branched retail channels” and appeals to younger consumers who increasingly want digital wristwatches. The period in which Swiss watch brands could make an impression on smartwatches is running out. “Time may be running out for Swatch, Tissot, TAG Heuer and others.”

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Apple can’t keep up with sales

In terms of sales, Switzerland should still have a clear lead over Apple because high-priced luxury watches are currently selling well worldwide. In 2018, Swiss watches exported the equivalent of 19.8 billion euros. The official value for 2019 is not yet available, but is estimated to exceed the € 20 billion threshold.

Swatch Group suffers the most

Apple generated sales of the equivalent of EUR 24.7 billion in 2019 in the “Wearables” division. This business area also includes other products such as the popular AirPods earphones and HomePod speakers. The Swatch Group in particular is one of the upheavals in the watch industry
    affected. The group includes luxury brands such as Breguet, Blancpain and Omega, but also brands that are aimed at audiences with less purchasing power, such as Tissot, Calvin Klein, Swatch and Flik Flak. According to a report by Watson.ch, the entry-level segment, which includes watches at a retail price of up to CHF 500 and an export price of up to CHF 200, accounts for 56 percent of the export volume in terms of quantities. However, this segment only holds 4.1 percent of the total value in Swiss francs.

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