Apple Watch vs. Swiss Watch Industry Sales Q4 2017
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Apple Watch vs. Swiss Watch Industry Sales Q4 2017

By Ornatus-Mundi · Feb 13, 2018 · 22 replies
Ornatus-Mundi
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A new chart published today by the market research firm Canalys compared shipment estimates for the Apple Watch with published shipment counts from the Federation of the Swiss Watch Industr y (FHH), using a summarised number for all Swiss-produced watch exports: The chart shows that in the last (hol

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A new chart published today by the market research firm Canalys compared shipment estimates for the Apple Watch with published shipment counts from the Federation of the Swiss Watch Industry (FHH), using a summarised number for all Swiss-produced watch exports:



The chart shows that in the last (holiday) quarter of 2017 Apple sold 8.0 million Apple Watches, clearly beating the Swiss watch industry's figure of 6.8 million pieces. This is the first time ever in the existence of Apple's watch line that higher number were reported for a wearable smart device than for a 'traditional' watch (which here includes mechanicaly, quartz, digital and even Swiss smart watches).

The numbers also highlight two other interesting pieces of data; (i) over the course of an entire year, Swiss watches still dominate sales; while (ii) the number of Apple Watches sold per quarter grow steadily at a year-on-year basis, while the Swiss watch numbers remained flat or even sunk.

This is a development which is certainly troubling for the Swiss watch industry, as the smart watches (here clearly dominated by the Apple Watch) clearly affect the former's sales and are thought to be a significant cause for the largest decline in sales of Swiss watches experienced in the last 6 years ($ 2 billion drop). Swiss watch brands have attempted to contain the avalance from Cupertino with own smart efforts, albeit with noly limited success.

It will remain to be seen, of course, whether the Apple Watch can sustain her path of growth. Apple is known to rejuvenate the device frequently, and is expected to present a revised form factor later this yea, both of which can be drivers for sale with significant impact.

Interesting times, indeed!
Magnus
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The Discussion
JT
JToddH
Feb 13, 2018

How can one compare shipments of $200-$400 "smart" watches to the output of Swiss "luxury" pieces. I think this is a marketing gimmick for the tech industry. In fact, if you look at Canalys, who authored the study, they are a technology market analysis firm. Perhaps in a few years, FHH will fire back with their own study about the fate of watches. I bet it will look something like this:

PA
patrick_y
Feb 13, 2018

When am I going to get my Healthwatch? I mean Smartwatch! Oh, let's just call it Applewatch! Living in Silicon Valley, I'm one of the few who don't wear a smartwatch!

OR
Ornatus-Mundi
Feb 13, 2018

First, the FHH numbers include ALL Swiss watch numbers, not only the luxury ones, also the CHF10 throughaway pieces. Second, Canalys reported numbers not speculation (as you did with your graph). Third, and most importantly, I severaly doubt theses numbers are meaningless. For us collectors of fine pieces perhaps, but for the accounting and marketing department at the Swiss watch brands certainly not. Sales lost to competing product categories are sales lost for the entire indutry, which equates

AL
Alkiro1
Feb 13, 2018

In addition, I’m pretty surprised by figures given for the number of Apple watches sold as the Cupertino firm doesn’t communicate about them. I think a big gap can exist between estimates and real sales in my opinion. Best wishes Alkiro

JT
JToddH
Feb 13, 2018

No doubt your comments are valid, but I still hold out hope that smart watches are still more of a novelty, as were palm pilots. Any product based on technology is prone (if not inevitable) to obsolescence. I have to believe the quartz crisis presented a much greater threat to the industry, yet it survived. My hope is that this will be no more than a bump in the road. I may be wrong, but it is my fondest hope. Besides, the Canalys chart shows much more seasonal volatility in the Apple watch wher

PI
piccolochimico (aka dsgalaxy1)
Feb 13, 2018

Smartwatches are definitely another "animal", apple watch is the leader and the chart does not include android watches, so i'd be curious to know the overall figure of smartwatches (apple + android). Hard to compare a tech tool (i still do not understand the need of such a toy, but that's me) with a mechanical watches, but in those 6.8 million watches there hi-end watches (i don't like the world luxury, but it's always me) which are likely few tens thousands, than the majority of cheap swiss mad

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