Apple Watch: Is time ticking for traditional timepieces?
Watch makers lean on new innovations to compete with the latest from Apple
During World War II, Switzerland's neutrality meant it could continue making watches while other countries moved all their timing apparatus production into weaponry. As a result, after the war Swiss watchmakers had virtually no competition, and by the late 1960s commanded 50 per cent of the world market. But then the real war began.
In 1969, Seiko unveiled the world's first quartz watch, which made accurate time keeping much less expensive. Swiss watchmakers largely ignored the innovation, and by 1983 Switzerland had lost half its watch companies and two-thirds of its watchmaking jobs to Japanese and U.S. brands. In crisis mode, a Swiss group launched its own inexpensive quartz watch, which is credited with saving the industry.
The Swatch Group went on to become the world's largest watch manufacturer, and by 2013 Switzerland was exporting $23 billion of watches.
But yet again, Swiss watchmakers are facing a potential disaster. This Apple Watch commercial was launched on April 24th, the day sales officially started. Now, you might wonder why watchmakers would care about the latest wearable computer, since to date wearable computer sales have been muted at best. Regardless, most major Swiss manufacturers are responding quickly to the Apple Watch with timepieces that connect to smartphones.
There's also Alpina's horological smartwatch — seen on a mountain climber in the above ad — as well as smartphone-connected timepieces like the Tag Heuer Carrera, Frederique Constant Linked to Motion, and Swatch's entry into the category, the Touch Zero One.
No one's taking anything for granted since the Apple Watch is a formidable competitor. It's much more watch-like than previous wearable computers. And its $450 starting price targets mid-range watches, while the $22,000 gold model competes with high-end Swiss timepieces, like the Breitling B55 Connected.
As the Swiss wage war on a yet another enemy, the question is whether consumers will be satisfied any longer with a watch that simply tells time. An equally valid question is whether consumers will shell out big bucks for a smartwatch that needs updating and replacing on a regular basis to keep up with innovation.
Bruce Chambers is a syndicated advertising columnist for CBC Radio