Rolex is valuable as a brand because it can take a relatively inexpensive product, slap its brand on it, and then sell the product for a huge margin. I suspect the $5,000 Rolex is no more mechanically sophisticated than the $1,000 Hamilton. The markup is for the prestige of the brand. I'm surprised Forbes doesn't have Rolex ranked higher.
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Setting aside the watch collectors (which is a huge part of the market, I know) many watches are purchased to actually be worn. If someone buys an Apple Watch and likes it, they might be less likely to buy a nice automatic. If someone takes off their automatic and puts on an Apple Watch, that is competition.
If Apple is suddenly selling 10 million watches a year, how in the world do you think that doesn't have a huge impact on the watch industry? Maybe you feel the impact will only be felt by the manufacturers who sell the $50 to $500 watches. I think the impact will be felt all the way up the chain. That is assuming that folks like wearing smart watches. I'm not 100% sure that this will be the case. It might be a product closer to Google Glass. Somewhat neat but not something that most folks want to wear.
But I am sure that if Apple is selling 10 million watches this year and next year 20 million and the year after that maybe it is 30 million, then this will radically impact the watch industry.
It's a beautiful thing. Apple are likely to sell a lot of them. The only issue I see is that people that wear classic watches like classic watches.
The Apple watch does lots of fancy things but it's not really going to appeal to those that have a collection of 'real' watches, because, and I say it again, they fall in a completely different category of item. One, being a mechanical, self charging timepiece, the other, a tech filled, mobile phone reliant computer.