TAG Heuer Announces Smartwatch Plans as Threat From Apple Watch Looms

[BvizioN]

they are not going to abandon thier mechanical range . They might run a toy version of their watches if it's profitable . And anyone with half a brain that is prepared to throw huge amounts of money at a high end watch, should get a mechanical version that will hold its value, and even go up in time. Suckers will get digital, and be forced to replace them every x years like an iPhone, when the battery goes or latest iOS version runs like a dog and lacks features.

Think back to your grandparents fridge, how long did that last?? Goods these days have excellent marketing and are made to fail after a certain period, usually not to long after the warranty

Well, I totally agree that the lifespan of digital product is limited, mostly due to the extremely fast technology advancements that make older products obsolete. But what am saying is, I would buy smart watch rather then mechanical watch for the added features. I don't want a bulk on my wrist (regardless of how beautiful it's crafted) that simply tells me the time which now days it is accurately displayed anywhere you look. Couple of decades ago it made sense, not so much now I think.

 

[Keirasplace]

One of the problems with the traditional Swiss watch is the cost of servicing said item so that it a) keeps reasonable time and b) works at all, if it is battery powered.

With some mechanical or electro-mechanical watches, the expense of doing this is not far off that of buying a new (basic) Apple Watch every year and throwing the old one away.



That makes a lot of sense. If someone buys an Apple Watch priced in the $thousands, it’s reasonable to assume they liked the design and want to keep it. Offering the latest high tech innards for the cost of a comprehensive service on a conventional watch would seem to be a no-brainer. Changing the display, battery tech, etc. might also be on the cards. That way, you *can* hand it down to your grandchildren, as it’ll be progressively fitted with a holo-projector, neural interface and antimatter drive!

While in theory that makes sense, tech is not mature enough for it to be a hand be down for 20+ years.

They'll be a need to change interconnects much more often than that. I'd say, the body/innards will need to be changed every 5-6 years and we shouldn't expect anything beyond that for now.

Since watches have more narrow utility, that would mean the watch would probably be usable as a semi current tech for about 10 years. If Apple doesn't change the communication protocols and keeps a blue tooth LE chip in their host device, they in theory could make the watch last 20 years as a obsolete yet useful thing.

Though I doubt many would actually keep anything but the gold ones past 10 years. The aluminium watch probably wouldn't last more than 4 years before being dinged up (at $350 its not an heirloom) and the body of the steel one probably should last at least 10 years.

 

[firewood]

No traditional watch company is scared of Apple. Get real for once. How is in the world is a smartwatch compared to a traditional watch? I would never spend 5k on a stupid smartwatch when I could get a traditional watch for the same price. Handmade watch versus a watch made by a assembly line in China?? I think not.

That's exactly what thoroughbred horse breeders once said about the first assembly line manufactured automobiles. Yes, breeders still exist, but how many horses do your friends buy today? (except for rich teen girls ...)

 

[Tech198]

So, Apple makes a smart-watch......every standard watch maker makes a smart watch to compete in this space, or hopefully they'll keep making non-smart watches since there's a market anyway. Why kill it off for smart-watches ?

 

[peterdevries]

Yes and no. Microsoft intentionally has held back the marketing to counter the Apple watch when it launches.

Well, we don't really know that for certain, orhave they come out and said it?

The marketing strategy from what I have been told is they are currently moving the Microsoft watch product into the distribution chains with them on the shelves at the time of the Apple Watch launch.

When there are shortages in Apple stores and other retailers, then the big ad campaign from Microsoft hits with the "We have plenty of smartwatches!" storm going out.

Will that play out well? I have no idea.

To be honest I'm not sure whether that will work to great effect. The watches are very different in design and functionality. I don't see many people that have decided for either watch, jump to the other one if their main choice is not available.

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That's exactly what thoroughbred horse breeders once said about the first assembly line manufactured automobiles. Yes, breeders still exist, but how many horses do your friends buy today? (except for rich teen girls ...)

Oh come on firewood. You can't be serious.. The watch market is very different from the smartphone market, horse market or any other market for that matter. What most people here seem to miss is that high-end watches are not an inferior type of watch due to less functionality. Fuctionality is not the main driver in high-end watches, but manufacturing complication and materials.

The traditional high-end watch market is flourishing, despite recent and less recent changes to the low end by the digitalisation or increased incorporation of functionality of quartz and digital watches (which have been around for more than 40 years). The high end markt is not about functionality and is driven by entirely different consumer behaviour than the lower end.

The way one characterizes high and low end differs depends on what one looks at (price, consumer segmentation, materials, branding), but it is very clear that above a certain range that starts probably at a price of 10000 dollars, there will be only very few automatic watch makers that will be swayed to even look at smartwatches. At the most they might create a new brand , but none will risk alienating their current consumer segments by integrating digital watches in their current line-up. There is a reason why quartz is nowhere to be found at this price range, regardless of its superior time-keeping capabilities.

 

[Serban]

this is the future for the next 15 years
Apple did it again.
Think that a smartwatch made by sony i guess was on the market since 2004 and since then until Apple watch no swiss high end brand was thinking about smartwatch.
Not samsung gear not lg or everything else! ..is about making a high quality made digital watch..what Apple did with apple watch..

 

[lowendlinux]

I think this is a fools errand for a brand that's already in many ways questionable.

 

[Steve121178]

I can't wait to see what Tag comes up with. I love their watches. Hopefully it will be something beautiful to see. Too bad it's not Apple...

I own 5 TAG watches and I am not interested in a TAG smart watch. What attracts me to TAG is everything the brand stands, their designs and for TAG's strong links to motor racing.

I have two TAG Heuer Carrera's and they are a work of art. To replace the face and movement with a screen running a bunch of crappy apps is just wrong. It's not what people want on their wrist.

If you are buying a TAG, Rolex or Omega for example, you are buying a very high quality timepiece that in theory you can pass from one generation to the next. Who's going to want a crappy redundant and no longer supported smart watch once the novelty has worn off?

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this is the future for the next 15 years
Apple did it again.
Think that a smartwatch made by sony i guess was on the market since 2004 and since then until Apple watch no swiss high end brand was thinking about smartwatch.
Not samsung gear not lg or everything else! ..is about making a high quality made digital watch..what Apple did with apple watch..

If they think there's money to be made, they will make a smart watch. I think it's a little disappointing that they are even thinking about it, but next year is an opportunity to launch one and see how it does in the market.

Everyone knows that TAG will design something stunning, but the software will be absolute crap as it will be an after-thought and a "bought in" package, probably Android based. So all you are going to have is a very expensive watch that does little more than a crappy Pebble.

 

[Piggie]

2/3 of that 90% Android market don't have enough money. That's why they bought those Android junks. Do you think those will buy a smart watch?

An Apple watch is about 4 tanks of gas(petrol) in the UK.

If most people really wanted one, they could get one.

 

[Steve121178]

2/3 of that 90% Android market don't have enough money. That's why they bought those Android junks. Do you think those will buy a smart watch?

In the UK where Android dominates, most people can get an iPhone or high end Android phone free on a contract. Most people choose Android because they want an Android phone.

It's also ridiculous to call Android junk when Android has been a lot more innovative in recent years than iOS. Android lacks the polish of iOS but it's streets ahead with features and functionality.

Even Windows Phone is catching up and has a much better UI than iOS.

 

[s2mikey]

Why would TAG, a very respected and high end watch company mess with "toys" like this? Dorks that buy Apple watches are NOT the intended audience for an elegant and stylish TAG. What a joke. What's next, Rolex making one? Patek Phillipe? Cmon.

I don't see why TAG would consider a gimmicky toy to be a threat at all.

 

[jayenh]

The amount of delusion is incredible. The high end watch market will never be broken by a smart watch. Watch collectors and enthusiasts may add a smart watch to their collection but if anyone thinks that they are going to give up the rest of their watches and own 1 watch, and that 1 watch be a smart watch, well then they don't have much of a clue about watch enthusiasts or the watch market.

There are companies that have stayed afloat perfectly fine while offering watches for no less than thousands of dollars. Why on earth would they feel threatened by a watch that costs a couple of hundred bucks? They will coexist because their customer base can quite easily afford both.

 

[prowlmedia]

In the UK where Android dominates, most people can get an iPhone or high end Android phone free on a contract. Most people choose Android because they want an Android phone.

It's also ridiculous to call Android junk when Android has been a lot more innovative in recent years than iOS. Android lacks the polish of iOS but it's streets ahead with features and functionality.

Even Windows Phone is catching up and has a much better UI than iOS.

Er..No - Some people buy an android phone because they want it. Lots of people get them because they are very cheap. You can get a ZTE Kis for £40!! Adults get kids androids because they are cheap.

And dominates is interesting - it's not like it's 90%-10% or anything

Apple's 39% of smart phone sales is not bad considering they technically sell 1 phone. ALL Androids hit 51% (Rest Windows / blackberry) but given their are about 200 awful ones and 3/4 good ones. That makes sense. I bet only 25% are the decent expensive Phones Like the HTC one... Given Samsungs Crashing share

As for Features. Thats entirely up to you but I think the last Update of Android was completely empty of new feature. I see no innovation at all in the last couple of release in fact apart from google now... which works on iOS anyway.

Windows. UI... I just spit my coffee out when I read that. Everyone I know that got suckered into buying one hate it... mostly because of the UI but mainly because nothing works on it. Phones are release and then not updated and then nothing runs. Same with 90% of Droids. Even then there is a massive delay.

I have nothing against Android at all. Competition drives things massively, but then main reason I won't buy one is it's apparent best feature - It's completely open... and you need a freaking Antivirus on it... on...a... phone.

 

[apolloa]

2/3 of that 90% Android market don't have enough money. That's why they bought those Android junks. Do you think those will buy a smart watch?

I think you've been drinking the koolaide too much to make that comment. Android is not junk and Apple are not a status symbol for the rich, if they were then Apple wouldn't sell anywhere near the amounts they do.

And as has been said, you can get an iPhone for free or very little on contract.

 

[KindredMAC]

https://forums.macrumors.com/threads/1751182/

@Rogifan
@Ventilatedbrain

 

[peterdevries]

Why would TAG, a very respected and high end watch company mess with "toys" like this? Dorks that buy Apple watches are NOT the intended audience for an elegant and stylish TAG. What a joke. What's next, Rolex making one? Patek Phillipe? Cmon.

I don't see why TAG would consider a gimmicky toy to be a threat at all.

The reason is that TAG is not earning a lot of money in their flagship range anymore due to increased competition from Omega and the like. They are suffering from an image problem that is a result of their "organic" watch designs with flowing curves that started about 15 years ago AND the focus they have increased on their digital watch range to move into the lower segments of the watch market.

Looking at TAG they have started a climb down the ladder and are now at their lowest priced watches in competition with Seiko, Tissot and others. It is logical that they see the need to look at Smartwatches, because their competitors in that segment will do so too.

It's a pity but TAG has bet on the wrong horse and is now in shopping windows next to Tissot and Longines, whereas they should be in dedicated displays next to Omega, IWC and Breitling.

 

[szw-mapple fan]

Wake up. Swiss high end watches are handed down to next generations. Not disposable made in China toys obsolete after one year.

If they're handed down generation after generation, how does the watch company make money?

 

[phenoplastic]

They've been working on this about four months..? ...watch out apple!

 

[Tech198]

2/3 of that 90% Android market don't have enough money. That's why they bought those Android junks. Do you think those will buy a smart watch?

wow... that's all I gotta say here..

 

[Rossatron]

I would like to see an analogue hands/touch screen hybrid. If I raise it for more than <average time to read time> a transparent screen above the hands turns black and then all the touch interface appears. When I lower my watch, it goes back to transparent. It may be a bit complicated to produce, but it's something I'm more likely to switch to from "regular" watches.

I fear this watch will end like a ridiculously expensive "luxurious" cell phone (if you guys remember) that was just cheap garbage wrapped with gold and diamonds.

 

[Steve121178]

The reason is that TAG is not earning a lot of money in their flagship range anymore due to increased competition from Omega and the like. They are suffering from an image problem that is a result of their "organic" watch designs with flowing curves that started about 15 years ago AND the focus they have increased on their digital watch range to move into the lower segments of the watch market.

Looking at TAG they have started a climb down the ladder and are now at their lowest priced watches in competition with Seiko, Tissot and others. It is logical that they see the need to look at Smartwatches, because their competitors in that segment will do so too.

It's a pity but TAG has bet on the wrong horse and is now in shopping windows next to Tissot and Longines, whereas they should be in dedicated displays next to Omega, IWC and Breitling.

Your post is full of inaccuracies and Tissot make cheap watches, with most selling for around £300-£800. For comparison, the very cheapest current TAG Heuer watches are the F1 branded ones which retail around £1000 (grey imports can usually be found a little cheaper online). My most recent Carrera cost £4500.

TAG Heuer watches have actually gone up in price in recent years, reflected in the much higher quality timepieces they are now producing. As another example, Monaco's are at least £500 more compared to 2 years ago. So TAG are trying to compete with Omega etc, not the low end of the market.

 

[OllyW]

The reason is that TAG is not earning a lot of money in their flagship range anymore due to increased competition from Omega and the like. They are suffering from an image problem that is a result of their "organic" watch designs with flowing curves that started about 15 years ago AND the focus they have increased on their digital watch range to move into the lower segments of the watch market.

Looking at TAG they have started a climb down the ladder and are now at their lowest priced watches in competition with Seiko, Tissot and others. It is logical that they see the need to look at Smartwatches, because their competitors in that segment will do so too.

It's a pity but TAG has bet on the wrong horse and is now in shopping windows next to Tissot and Longines, whereas they should be in dedicated displays next to Omega, IWC and Breitling.

TAG Heuer has only just been restructured with their CEO departing last week. They are part of LVMH group and had tried to move upmarket but hadn't been that successful and had ended up competing with their higher end sister company Zenith.

They are now going to refocus on the entry level ($1,000 - $3,000) section of the market which does mean they will be competing with Tissot and Longines again.

 

[Steve121178]

If they're handed down generation after generation, how does the watch company make money?

By selling more watches. Many people that are handed down something are more inclined to go and buy another modern timepiece. If you have the money to buy a nice watch and you are into watches then you don't just have one anyway, usually you end up with a small collection.

I never thought I would be in to watches, but once you buy one then you are always on the lookout for another.

 

[prowlmedia]

I can see the advantages if you're an iPhone user like us but as 90% of smartphones run Android that leaves a whole lot of market for the rest of the watch industry to exploit.

I don't think the Apple Watch will be the roaring success some people are predicting.

You realise 75% of those Androids are very very low end Phones <$150 right Most of those don't have bluetooth 4 and as such not compatible with most smartwatches...

The apple watch will sell massively Given there are 400 million iPhones in use... And the Market forecasts are all over the place but Forbes lowest Estimate was that 10% would buy an apple watch in the first year... that's about $16billion!!!

All of the Rest of the smartwatches sold 3 million oct2013-may2014 ( 0.3 million in 2012 )

 

[Steve121178]

They are now going to refocus on the entry level ($1,000 - $3,000) section of the market which does mean they will be competing with Tissot and Longines again.

TAG's most popular watches are the Formula One & Aquaracer models, so it makes sense to focus on what makes money, but they will still focus on the Carrera & their signature Monaco watches, as they are what makes TAG, TAG!

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The apple watch will sell massively

I don't think it will. Not when people see the cost of the more desirable Apple Watches. The cheap £400 ones look very, err, cheap. The more expensive ones are going to cost more than £800. That's a huge punt for a first-generation model that will be obsolete in no time at all.