Apple Watch is already hurting the traditional watch market

“There are signs that some consumers are holding off buying other timepieces, analysts said,” Lisa Fickenscher reports for The New York Post.

Fossil Group, which makes watches for Michael Kors, Tory Burch, DKNY and other big designers, reported a 7 percent decline in revenues in the first quarter, to $725 million,” Fickenscher reports. “Michael Kors, for one, is feeling some pain. ‘Our watch business is not healthy in North America,’ said CEO John Idol this week, adding ‘whether that’s something that’s a trend, whether that’s something that’s driven around other entries into the category, we’re not exactly 100 percent sure.'”

Read more in the full article here.

MacDailyNews Take: The denial is strong with this one. It’s the Apple Watch, John. You need to get yourself mentally prepared for what’s coming your way.

[Thanks to MacDailyNews Reader “Nicholas C.” for the heads up.]

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27 Comments

    1. Keep dreaming!

      Haven’t you heard, the Apple Watch is NOT taking the world by storm. Most people who finally try out this unnecessary, confusing, hobbled POS are sending it right back to Apple.

      Even most douchebag celebrities don’t even wear theirs anymore.

      Siri is virtually non-existent in most apps, and when it is available it sucks. Try holding down a button with one hand and manipulating the crown with the other… these are necessary activities for Apple Watch users, even when they are on the go. Can you say FAIL?

      1. Buy one and you will understand.

        Mine came in a week ago, would not go a day without it. This is a productivity tool that also tells time.

        The only thing left outside of smart watches will be jewellery, it is difficult to see value in something that can only tell time.

        The Swiss industry is beginning to realize this.

      2. My friend at work wears (wore) a traditional watch. Now he has an Apple Watch and has not worn a traditional watch for a month. He is very pleased with his Apple Watch (SS w/Milanese band) and I do not see him ever buying a traditional watch ever again. I strongly suspect that the same story applies to millions of other people. The Apple Watch does not have to achieve numerical majority to bring the pain, anonymous orandy.

  1. This predictive & disruptive stuff can be as fatefully plain as the nose on any-CEO’s face except when they live in the world of obvious & self-serving desperate denial. “Apple Watch announced and arrives – sales go down, hmmm. Causal connection? Nah! After a couple hundred years of Swiss watch supremacy these computer guys aren’t going to just march in and take over…” BOOM!!

    That said I still hope they find a niche to serve.

    1. When you have a long-term and fairly stable and predictable industry, a 7% drop is highly significant. In the absence of any other factors, the obvious source is the new, disruptive Apple technology. This 7% drop for Fossil is the canary in the mine. If this effect is sustained, then the success of the Apple Watch will be clear and obvious to everyone (who does not close their eyes to the evidence).

      It is time to short Fossil in the stock market (or late).

  2. I finally got to an Apple store and looked at the watches . I really liked the Apple Watch version. Even if I wanted to spend the money there is no way I would spend $10K or more for the Edition. It simply does not have the look of an expensive watch. A $5000 Rolex looks much better.

    1. So then you’d agree a Rolex is a timepiece and and an exquisite piece of craftsmanship. Apple watch holds it value at a $400 price point. How could that hurt a real watch maker. Never. It’s tech not jewelry

  3. I see little value in designer watches. DKNY????

    That’s got to be crap. Real watches have history, solid craftsmanship. Apple is more a watch maker than clothing specialists. They have “watch” craftsmenship in their DNA since the first Apple One. I digress. iPods exemplify the kind of culture needed to make a watch. These fashion moguls have no such DNA and frankly, wreak of Chinese Quartz BS. I mean, really.

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