• The Drop in Recent Swiss Watch Exports is Being Attributed to the Apple Watch



    According to the Federation of the Swiss Watch Industry, the Apple Watch was a significant factor in the drop of Swiss watch exports during the month of August. This factor could be playing a crucial part in the industry’s first annual decline in six years. The report states that shipments fell 1.6% to 1.47 billion Swiss francs or $1.5 billion according to the folks over at Bloomberg. Exports of watches under 200 francs ($205) were down 13% while watches between 200 and 500 francs ($205 to $514) were hit significantly harder, sliding 24%.

    When looking at the number of overall Swiss watch exports, they appear to have performed poorly for the first eight months of the year, declining 1.2%. Although the industry’s poor performance has also been attributed t to the rising franc and factors in China, including economic trouble and government campaign against high spending, the Apple Watch is believed to be drawing the attention of people who would otherwise consider a low-to-mid range conventional watch. As a result, Swiss brands that are operating in the same price range, such as Movado and Mondaine, are now increasingly selling or developing smartwatches. When it comes to the Swiss export market for watches over 3,000 francs ($3,081), Apple appears to have had little to no impact in this segment, where the Swiss export market rose 1.7% last month.

    Apple just recently released watchOS 2 as well, which many are claiming is the operating system that the watch should have originally been shipped with. The software update addresses several early complaints such as the absence of native third-party apps while adding features such as Time Travel and Nightstand modes.

    Source: Bloomberg
    This article was originally published in forum thread: The Drop in Recent Swiss Watch Exports is Being Attributed to the Apple Watch started by Akshay Masand View original post
    Comments 2 Comments
    1. brab's Avatar
      brab -
      OMG you are the worst spinner of news ANYWHERE.

      Here's the report of the Federation of the Swiss Watch Industry and PLEASE tell me where do you see the word Apple in there?
      http://fhs.ch/scripts/getstat.php?fi...m_150808_a.pdf
    1. qumahlin's Avatar
      qumahlin -
      Quote Originally Posted by brab View Post
      OMG you are the worst spinner of news ANYWHERE.

      Here's the report of the Federation of the Swiss Watch Industry and PLEASE tell me where do you see the word Apple in there?
      http://fhs.ch/scripts/getstat.php?fi...m_150808_a.pdf
      Did you not read the actual linked article? ModMyI isn't spinning the news, you could argue Bloomberg is. Another key thing is the swiss report you linked does not go into details. It's a very high level facts only report, it does not discuss or display analysis as to the causes of the trends, it merely displays and discusses the actual raw trend data, not what might be driving it. Which is why in that same report you will notice it doesn't even track or breakdown who the watch manufacturers are. Pure facts, no analysis.

      The reason Bloomberg stated the article is due to analysts take on the metrics compared to other known metrics: “I presume that the Apple Watch would put pressure on the low- and mid-tier segment of the Swiss watch market,” said Jon Cox, an analyst at Kepler Cheuvreux in Zurich. “Stock market volatility isn’t helping in China.”

      "The introduction of the Apple Watch, combined with a surge in the Swiss franc and a Chinese government campaign against extravagant spending, have clouded the outlook for Swiss timepieces. Wealth destruction caused by the Shanghai Composite Index’s 38 percent decline since mid-June may also be damping demand from rich Chinese."
  • Connect With Us

  • Twitter Box

  • Facebook