“Switzerland’s luxury watch industry is making a leap from its traditional production and models to win customers back from disruptors like Apple, the head of watchmaker TAG Heuer told CNBC,” Alexandra Gibbs reports for CNBC. “On Nov. 9, TAG Heuer will unveil its $1,800 Android-powered smartwatch in its attempt to take on the Apple Watch, which offers a mid-level range that costs a maximum amount of $1,099.”
“The president of LVMH’s watch division and CEO of Tag Heuer, Jean-Claude Biver, told CNBC Monday that like any newcomer entering into your field, Apple is ‘big competition,'” Gibbs reports. “‘How successful has Apple been? We don’t know. In the beginning, they were speaking about 10 to 20 million pieces, then sometimes we say they only sold 5 million. Nevertheless, to sell 5 million watches when you have not been a watchmaker is genius. It’s phenomenal. Now how will it act on the Swiss traditional watch industry? Certainly a big competition, huge! It will be a tsunami, for me. In the price segment, between say $200 and up to eventually $2,000.'”
“While the Apple Watch is worthy competition to the likes of Tag Heuer’s $1,800 watch, Biver argues any connected device selling above $2,000 is a ‘huge problem,'” Gibbs reports. “‘Above $2,000, the connected watch has a huge problem. There is no eternity, it means it will become obsolete and who wants to buy a $10,000 – $20,000 watch, that becomes obsolete after five or 10 years? …I don’t say we want to compete with Apple because we’re not in the same business, but we can compete any technological product. So this means we believe in it (smartwatches), but we also believe in our traditional product. We believe in both in fact.'”
Read more in the full article here.
MacDailyNews Take: 1. TAG Heuer, like everyone else, doesn’t have a smartwatch. It has a stupidwatch. It’ll sell like one, too. Calling something smart doesn’t make it so. It needs a broad, thriving ecosystem. Only Apple Watch can offer that. TAG Heuer is not going to “win back” any Apple Watch users. They’re gone. TAG Heuer cannot compete with Apple in smartwatches.
2. It doesn’t matter if a luxury Apple Watch will become obsolete. The people who buy luxury Apple Watches will simply replace them with the latest model. Biver, if he understands anything, should understand this at least. Buyers of luxury Apple Watches aren’t buying them for longevity, so it doesn’t matter if they will one day become obsolete. Timelessness it not a selling point for smartwatches.
3. Every traditional watchmaker, every stupidwatch maker, and every fitness band maker is competing with Apple; for wrist space, if nothing else. There is only so much room on the wrist.
We do not foresee anyone wanting to take off their Apple Watch in order to wear a “jewelry watch.” Apple Watch is not just a watch to be replaced with another regular watch. Maybe wearing two watches in come into vogue for special occasions? — MacDailyNews Take, April 3, 2015
Here’s what makers of Swiss or any other watches should do: Push the idea of wearing of two watches, one on each wrist or two on one wrist, into vogue. Because once people start using Apple Watch, they aren’t going to want to leave it at home. Ever. They won’t want to go to dinner parties without their Apple Watch. And that’s bad, bad news for watchmakers not named Apple. Watch and see. – MacDailyNews Take, April 16, 2015
SEE ALSO:
I own two $6,000 Swiss watches, but I wear my Apple Watch most of the time – August 14, 2015
Swiss watch exports hit worst slump in five years as Apple Watch debuts – June 19, 2015
As Swiss watchmakers dismiss Apple Watch, Swiss National Bank increases Apple holdings by 60% – May 10, 2015
Apple Watch Edition is poised to disrupt the classic Swiss watch – April 16, 2015
Jean-Claude Biver changes his tune, calls Apple Watch ‘a fantastic product, an incredible achievement’ – January 20, 2015
TAG Heuer plans smartwatch as honcho Jean-Claude Biver changes mind as Apple Watch looms – December 16, 2014
Apple Watch starts countdown on face off with Swiss industry – October 31, 2014
The fashion elite crowd around Apple Watch at Colette in Paris – September 30, 2014
Jean-Claude Biver: ‘The Apple Watch cannot compete at all with European watches’ – September 15, 2014
Jean-Claude Biver: Apple Watch ‘too feminine; looks like it was designed by a student in their first trimester’ – September 16, 2014
Barclays: Apple Watch could crush companies like Fossil – September 16, 2014
Jean-Claude Biver: ‘The Apple Watch cannot compete at all with European watches’ – September 15, 2014
Old school watch makers don’t get Apple Watch – September 12, 2014
Apple Watch, the world’s first real smartwatch, will be a massive hit – September 9, 2014
Apple iWatch designer Jony Ive: Switzerland is in deep shit – September 4, 2014
