An iWatch? Or a Rolex?

After reading Vanessa’s blog entry on Apple’s new product iWatch, I have some thoughts I would like to share. I do not agree with Vanessa’s opinion that iWatch is not going to affect the demand for Swiss watches. In my opinion, iWatch is going to change the entire watch industry. Certainly, it is not going to swipe out the Swiss watch industry, but it will have a huge impact on it. iWatch not only show the time, but it has many other uses such as apps, tracking daily exercises, having it connected to phones,  music, and so on. They are not just revolutionizing watches, but also payment processes that could be connected to the watch. They can simply swipe the watch in front of the credit machine for payments. So many of these events wouldn’t be done by a simple Swiss watch. Sure, a Rolex watch will reflect on your status, but having an iWatch will also show that you are in the fashion, the new trend in the generation.

In my opinion, iWatch will become a disruptive innovation in the watch industry. “It is going to change the way people view watches.” Says Tim Cook, the CEO of Apple. However, since Rolex is the “classic” and shows the highest status of a person, the product would not become obsolete, but would definitely have a decrease in revenue for Swiss watch.

Bibliography:

http://www.forbes.com/fdc/welcome_mjx.shtml

http://www.rolex.com/watches/baselworld-2014/new-rolex-datejust-pearlmaster-34.html