It isn't about beating AAPL, it is about not losing more market share or sales of existing customers by responding to market forces. Swatch will have to segment. Some inexpensive watches between $100-$200 and then an upper end line over $500 with their Tissot brand. Further, MANY DO NOT LIKE THE APPLE WATCH DESIGN. They want something different and Swatch's offerings may appeal to them. We've seen this before when quartz watches took the place of mechanical watches, sales of older mechanical watches dropped. Similarly, we now see smart watches taking the place of inexpensive quartz watches.