When it presented its newest collection of smartwatches, Apple decided to eliminate its most expensive version, a golden watch – much to the amusement of Swiss watch manufacturers.
Fitness gadget and not a fashion accessory
The golden Apple Watch cost more than 15,000 euro and did not sell very well. Luxury watch manufacturers felt a gadget, which is how they labeled the Apple Watch, could never exceed their craftsmanship. These manufacturers look on gleefully as Apple eliminates its golden model.
However, Apple did expand its collaboration with French fashion label Hermès, which created several leather straps for the American technology company’s watches. Nevertheless, Apple will now market its Apple Watch as a fitness gadget and no longer as a fashion accessory.
Classic brands tap into smartwatch features
The arrival of the Apple Watch and other smartwatches did prompt huge changes with major watch brands, whose cheaper models sold significantly less because of the new devices. Brands like Montblanc and TAG Heuer decided to add “smart” features to several of their models to counter the smartwatch’s popularity. According to Apple CEO, Tim Cook, the company was the world’s second best-selling watch brand in the world, only trailing Rolex.
“Apple’s move tells Swiss high-end brands that they were right not to touch the connected watches”, Jean-Claude Biver – head of LVMH’s watch division – said. “On the other hand, it’s a sign for the lower-end brands that they should try to make a connected watch. Because if Apple has become the second-biggest watchmaker already, without ever having touched a watch in its history, it means the connected watch has some legs.”
