“Watch out, watchmakers: The Apple Watch threat is ‘becoming real,’ says one analyst,” Elaine Low reports for Investor’s Business Daily.
“Sterne Agee CRT’s analyst Ike Boruchow lowered his price target on Fossil to 82 from 85, noting that the domestic watch market is softening and Apple Watch’s strong first-day showing mean adoption rates ‘could be on the rise,'” Low reports. “More than a million pre-orders for the Apple smartwatch rolled in on its first day of availability. This signals ‘very strong initial demand’ that could eat into Fossil’s share, said Boruchow.”
Low reports, “‘We estimate that FOSL sells only 30-35 million watch units annually, so a relatively low attachment rate for the Apple Watch can result in significant cannibalization of FOSL’s fashion-watch business,’ he said.”
Read more in the full article here.
MacDailyNews Take:
Fossil is soon to discover just how aptly they’re named. – MacDailyNews, November 13, 2014
Related articles:
The Apple Watch’s beautiful face is also its fatal flaw – says Fossil exec – March 6, 2015
Enjoy it while it lasts, Fossil – Apple Watch looms – November 13, 2014
Barclays: Apple Watch could crush companies like Fossil – September 16, 2014
Can you say coprolite?
I have a Megaladon coprolite on my mantle and my wife doesn’t appreciate it, I can’t figure out why.
Apple gives new meaning to watch competitors: Fossilized.
Fossil and other watch makers will see a drop off in sales, but I think it’s way too soon to start drawing conclusions. I’ve been buying Fossil watches for years. I bought them because I wanted a great quality watch, and they look great too. Consumers will still want great quality watches that look great. Not everyone will want a smartwatch.
Yes, some will, but the question is, will it be enough to sustain a business?
I don’t understand today’s business writers. He took what could have been a simple sentence “‘We estimate that FOSL sells only 30-35 million watch units…”‘ And added the word “only” which says absolutely nothing. Perhaps Mr FOSL and investors believe that’s a hell of a lot of watches.
sold all my fossil shares about a year ago when Apple watch was on the horizon. Fossil good company, nice products but watches within Apple Watches price range.
Everytime critics of Apple come out against Apple Watch they quote the uber expensive $100,000 and say “see apple isn’t going to destroy the Watch market” but of course that’s disinformation because the upper uber market is just a small tip of the watch iceberg , the other portion of it, the middle part (minus the $15 bottom) is vulnerable.
I’d say it’s too early to draw any conclusions about AppleWatch disrupting the entire watch industry. These idiots seem to enjoy stirring up controversy. I certainly wouldn’t junk all my other watches even if I had an AppleWatch. A watch is an accessory and accessories can be swapped whenever the need arises. I see absolutely nothing wrong with having a watch that only tells time.
You’re a troll, you must really enjoy disrupting this site, except your not. You and the rest of your kin are really boring.
I’ve been giving this a good deal of thought and think that even higher end watches are going to have some troubles, long-term if the Apple Watch really sinks in to the mass market.
People who say no, say Rolex, Patek Phillipe, etc, are in a different sphere, price-wise, and collectors have many watches. True, and they are beautiful works of art. You can have many traditional watches like this (assuming you are WEALTHY, of course!), and wear each when it makes sense to wear it.
Here is where the Apple Watch is truly disruptive: you will NOT want to take the Apple Watch off your wrist. Once you get into using the watch for fitness and life tracking, to see notifications, to answer simple emails and texts, and to use the myriad apps, you will NOT want to take your watch off, even when you go to a nice dinner or to specialized type events (save perhaps adventuring and SCUBA diving, where the watch’s lack of water resistance would be a huge issue).
What people seem to be missing is that once you buy an Apple Watch, you won’t be sharing your wrist anymore. Traditional watches can be kept in a nice case and cycled out as the mood takes you. The Apple Watch begs to be worn all the time, and the more you wear it the better it works. That is hugely disruptive. Not only ~$200 – $1,000 watches will see huge sales dips, so will watches worth ten times that much.
As MDN says, watch and see….