Audemars Piguet: Watch Market Hype Analysis

Key Points from the Discussion

• The Audemars Piguet Royal Oak Ultrathin was once readily available in boutiques, often with small discounts, a stark contrast to its current market status.
• One collector recounts nearly purchasing a Royal Oak at an AP boutique in Singapore, expressing regret over not doing so, despite noting the high service costs for the model.
• Enthusiasts, through their engagement on forums and social media, inadvertently contribute to the 'hype' and subsequent price increases in the luxury watch market, benefiting the industry more than collectors.
• Routine service for an Audemars Piguet Royal Oak Ultrathin, including movement service, case/bracelet refinishing, and water resistance testing, can cost approximately CHF 1,900 (around $2,100 USD) without major part replacements.
• The current market, characterized by low interest rates, government money printing, and high market liquidity, encourages treating collectible luxury goods like watches as investable assets, making it challenging for genuine enthusiasts.
• Some brands, particularly those not part of large conglomerates, have mastered creating desirability and leveraging FOMO (Fear Of Missing Out), mirroring trends seen in other luxury collectibles like sneakers and handbags.