Swiss Watch Exports See First Decline in Six Years Following Apple Watch Release

[PhilSynowiec]

It's hard to believe that it has nearly been two months since the Apple Watch hit the public market. Apple's flagship smartwatch, and ticket into a new niche, took the world by storm back in April and the feedback has been pronominal.

Back in 2007, Apple killed off a lot of cellular phone competitors with the iPhone, and now it seems the fruit company is on track to do the same with watchmakers. On Monday, Bloomberg reported that the Federation of the Swiss Watch Industry noticed its first decline in exports in six years time. This comes to no surprise that this decline happened within the months of April and May, following the release of the Apple Watch.

Financial analyst Patrik Schwendimann of Zuercher Kantonalbank noted, "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. The U.S. market might only grow by a low single-digit percentage this year, slowing down from 6 percent growth in 2014."

The United States is of course an important market for the FSWI, but the report goes on to say that exports to Hong Kong dropped as high as 34 percent. Of course there are other things that could have caused this decline, such as May having less working days this year than last year, but it's pretty obvious the Apple Watch made a huge impact.

What do you guys think? Are we looking at the beginning of the end of the "oldschool" watch industry?

 

[scifan57]

Not necessarily, but the lower priced Swiss watches may see a drastic reduction in sales, with many lines ceasing production. I think that the high end Swiss watches will survive as classic watch technology will always have a place, either as a fashion statement or as fulfilling a need that devices like the Apple Watch can't. Divers watches, for example.

 

[ardchoille]

Not necessarily, but the lower priced Swiss watches may see a drastic reduction in sales, with many lines ceasing production. I think that the high end Swiss watches will survive as classic watch technology will always have a place, either as a fashion statement or as fulfilling a need that devices like the Apple Watch can't. Divers watches, for example.

I also think brand loyalty will play a part there.

 

[spencerdl]

I truly believe the AppleWatch will effect more than just Swiss watch sales...Just my .02 cents

 

[Skull One]

No chance..... No self respecting Swiss watch or any mechanical watch fan would switch to a smart watch....... Not in a million years...... Whatever the reason for decline, it certainly isn't Apple Samsung Motorola or any similar ..... Bank on that


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While your supposition has merit, your conclusion has a small flaw. Swiss watches are a status symbol first and for most. The number of true mechanical watch fans has been falling off for the last two decades. But the number of status symbol fans has actually increased over time. The Apple Watch represents a new status symbol. Those Swiss fans will switch. And in droves.

 

[scifan57]

No chance..... No self respecting Swiss watch or any mechanical watch fan would switch to a smart watch....... Not in a million years...... Whatever the reason for decline, it certainly isn't Apple Samsung Motorola or any similar ..... Bank on that


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You shouldn't have banked on it. I've worn Rolex watches for over 30 years and I'm now using an Apple Watch. I like vintage and antique mechanical watches and have no plans to get rid of my collection or to stop wearing mechanical watches entirely.