When Apple released plans to launch the Apple watch, investors and employees of the Swiss Watch Market panicked. Apple is constantly creating new opportunities for themselves by entering and exploring new markets. Most consumers would assume this release would threaten many of the worlds oldest watch companies; however, my analysis after reading several articles has proven the opposite.
Currently, very few people under the age of thirty wear watches, but with the release of the Apple watch, it makes them relevant again. Yes, during the day, one may wear the beneficial Apple watch, as it can perform tasks such as checking your heart rate to paying transactions. However, it is unlikely the device one would wear out to formal events-people may be inspired to purchase an actual watch for nightlife. Furthermore, it may encourage people who wore an Apple watch in their youth to purchase a Swiss watch as they mature. Secondly, the concept revolving around the Apple watch is extremely different from the one that applies to luxury markets and therefor, it applies to different consumers. Swiss watches are timeless, demonstrating craftsmanship, and status. The Apple watch changes as technology changes, new models being released yearly. The Swiss Watch market appeals to an upper class market while the Apple watch appeals to the mass-market. However, the Apple watch crosses over, complimenting the niche market Swiss watch makers have created, without endangering it.
References:
http://www.huffingtonpost.com/ryan-raffaelli/apple-watch_b_5823842.html