Apple Watches are outselling Swiss timepieces review
On Wednesday, consulting firm Strategy Analytics reported that Apple Watches outsold the whole Swiss Watch sector in 2019 by 10 million units. Tim Cook himself boasted about Apple's dominance within the conventional watch marketplace in 2018. However, the latest data (which 10 million figure) prompted speculation out of many about just how much Apple had interrupted those most elite manufacturers of timepieces, the Swiss.
But obviously, the story is more complex than that -- because"Swiss Watches" is a really wide term.
Apple does not release its sales figures, but to ascertain how many smart watches that the provider is slinging, Strategy Analytics used a"hybrid methodology of financial analysis and polled information from sellers" It discovered that Apple Watch sales increased 36 percent between 2018 and 2019. Meanwhile, the sales of all Swiss watches decreased by 13 percent in the exact same time period.
Apple's dominance seems like a startling truth because it usually means that a technology business and newcomer to the eye area is dominating over strong legacy manufacturers.
The complicating factor in the contrast for a whole is that"Swiss Watches" is a diverse category: it refers to lively plastic Swatches for under $100 and precious metal pieces of jewelry that go for thousands of dollars.
As Forrester retail analyst Sucharita Kodali pointed out, data demonstrates that there's a decline in earnings of Swiss watches around or under the exact same price point, like the more consumer friendly Swatch or Tag Heuer. But luxury brands such as Rolex or Patek Philippe do just as well or even better than they've been in the past. Apple Watch may be competing with a few Korean watches, but that does not mean it is taking down Rolex.
"It seems from the data over that the largest competition is in the lower end watch figures," Kodali said. "I believe at the high end, nobody sees Rolex and Apple Watches as substitutes. But do people see Swatch and Apple Watch as a replacement? More likely yes."
Waltzer agreed that this is most likely the situation. But also said that the width of the group also made Apple's effect on it more important.
"It is true that the markets for these two very different types of time pieces are unique," Waltzer said. "However, sales of the Apple Watch certainly do compete with and cannibalize sales of traditional wristwatches to a point, as consumers attempt to digitize and join their wrist wear."
Another issue with comparing earnings of Apple Watches to all Swiss Watches is that naturally Apple Watches are outselling the luxury things: way more people can manage an Apple Watch compared to a Patek Philippe.
"It's similar to an Xbox than a Maserati," Kodali said of this Apple Watch, in reaction to Mashable's question about if she believed it competed with nice watches as a status symbol." [It is ]nice to have, but you do not have to be at the 0.1% to afford one."
As a result of technologies, Swiss watchmakers may be in trouble. But the one percenters of that market? Same as it ever was, they are doing just fine.