Apple Watch sales surpass Swiss watch industry last year

Netease Technology News on February 15th, according to foreign media reports, in 2019, Apple smartwatch Apple Watch sales exceeded the entire Swiss watch industry sales.

A recent research report published by market consulting company Strategy Analytics shows that last year Apple Watch sold 31 million units worldwide, while the total sales of all Swiss watch brands were 21 million units.

Analysts differ on whether this means that the Swiss watch industry will be in trouble. Some people say that the end of the Swiss watch industry is coming. But some point out that Swiss-certified mechanical watches still generate more revenue than Apple Watch.

Steven Waltzer, the senior analyst at Strategy Analytics, said in an interview: “Apple Watch itself has become a status symbol and a strong contender for mid-range Swiss watches. Apple’s large customer base means By turning a small number of iPhone users into Apple Watch users, Apple Watch can achieve millions of sales. “

The Apple Watch can track users’ health and link to a variety of apps, making it faster to check-in online at locations such as movie theaters or gyms. Strategy Analytic’s research report points out that the Apple Watch attracts the younger generation, and the analog electronic watch is very popular among the elderly.

“People have embraced the Apple Watch as a solution that combines technology and fashion,” said Carolina Milanesi, an analyst at market research firm Creative Strategies.

Milanese said that Apple’s emphasis on health and fitness makes Apple Watch’s positioning different from Swiss watches, which are marketed as jewelry and fashion accessories.

She said, “However, Apple’s claim to health and fitness is more attractive to users than fashion and glamour, and these two value propositions are exactly what we seek today. No one in the wearable device market can Find a better solution than Apple. “

The popularity of the Apple Watch also benefits from the stronger ecosystem created by the iPhone, iPad and other Apple-branded products. Although Swiss watch companies also sell smartwatches, they run on the Android ecosystem.

“There is a consumer electronics-based relationship between Apple and the vast majority of Apple Watch customers,” said Rishi Kaul, a media and consumer technology analyst at technology research services company Omdia. Kaur noted that Switzerland’s Android-based WearOS software for smartwatches produced by watch manufacturers may be attractive to Android phone users.

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Nonetheless, analysts said that this does not mean the end of Swiss watch status as a luxury product, although it lags behind in the smartwatch competition.

“I don’t think it can be compared like this,” said Vincent Thielke, a research analyst at market research firm Canalys. “Ships are not the whole picture.”

Turck pointed out that the average price of a Swiss watch ($ 1,000) is about twice that of an Apple Watch, and the Swiss watch industry outperformed the Apple Watch last year in terms of absolute revenue generated.

Looking at sales alone doesn’t tell the whole story. Tilke said that Apple Watch may need to be replaced more frequently than Swiss watches to upgrade its technology and extend battery life, all of which may increase Apple Watch sales. He added that the Apple Watch may also attract new users who have never bought a Swiss watch.

“Apple Watch caters to a wider consumer base, including younger users and electronics enthusiasts. For these people, they choose smartwatches more for technical or health reasons than for them Because it favors ‘timeless watches’. “

Status symbol

Omdia analyst Kaur said that given the luxury pricing of Swiss watches and the different dials and designs available, its status as a status symbol is safe. If Apple wants to enhance the uniqueness or status of the Apple Watch, the only way is to invest in a designer brand. “

Ramon Llamas, research director at market research firm IDC, said that Swiss watches symbolize “luxury, status and wealth.”

He said: “The sales of Swiss watches over Apple Watches means the end of the fate of Swiss watches? I doubt it. People still have interest and demand for Swiss watches, and in fact, many young users are still eager to have a Swiss watch someday Watches. At the same time, today’s smartwatches—yes, even the Apple Watch—will look outdated in just a few years.

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