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Swiss Made Watches or Smartwatches?

Swiss Made Watches

If we were still in any doubt that 2015 was the start of the smartwatch revolution then the figures from Strategy Analytics certainly crushed it! In the last three months of 2015 we saw the first time in history that shipments of smartwatches exceeded those of Swiss made watches.

The figures from Strategy Analytics show that global smartwatch shipments reached 8.1 million units, slightly ahead of Swiss watch shipments at 7.9 million. This marks a very important period in the history of the smartwatch which is now starting to become a serious player in the watch industry.

What Is a Smartwatch?

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There are many different definitions of a smartwatch and the number of different watches included in the description will vary depending on which you choose. Generally any watch which incorporates extra features over and above telling the time are defined as smartwatches. This definition would include the Casio Edifice series but would not include GPS watches by Casio and Seiko.

Strategy Analytics have a sightly different definition of a smartwatch: “a computerized wristwatch with a high-level or expandable operating system produced and shipped from any country worldwide.” This definition will not include the Casio Edifice series as they do not incorporate an expandable operating system.

While this is probably self-explanatory, Swiss watches are defined as “a wristwatch produced and shipped from Switzerland”

The Apple Factor!

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As expected, the Apple Watch has made a huge impact in the smartwatch market. As with MP3 players, watches and tablet devices Apple seem to have opened the market up to people who wouldn’t have previously been interested.

We have previously reported on figures which appeared to be slightly below expectations, but they are clearly dominating the smartwatch market. In the final three months of 2015 Apple Watches made up 63% of smartwatch shipments, which equates to around 5.1 million watches. Although Apple have not yet released any official sales for their watches so all figures are estimates.

Strategy Analytics figures suggest a small dip in their market share from quarter 2, when the watch was released. At that time Apple held a 75% share of the market, although it is expected that such a drop would occur after the initial release.

Smartwatch Also-Rans

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The rest of the smartwatch market is primarily held by Samsung, who hold a 16% market share, giving Samsung and Apple a combined 80% share. This demonstrates that the smartwatch industry is currently very similar to the smartphone industry, which is also dominated by Samsung and Apple.

In an amongst the other 20% of the market share are watches from Sony, LG and Huawei. Worryingly, all of the Swiss smartwatch manufacturers combined only make up a tiny 1% of the smartwatch market. It’s a long way for Swiss manufacturers to go in order to catch up to the big boys in the smartwatch industry.

Effect on the Swiss Watch Industry

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It’s tough to really measure the impact of the impact of smartwatches on the Swiss watch industry. As we have reported before, the “smartwatch crisis” which was widely predicted in the run up to the release of the Apple Watch never happened. However it is looking likely that there is at least a minor impact from smartwatches on the Swiss made watches industry.

In 2015 the smartwatch market has grown by a whopping 300%, but the Swiss watch industry saw shipments fall by 5% in the final months of 2015. Is this the first signs of a smartwatch crisis?

It’s difficult to tell, especially as it is impossible to see how many people would have bought a Swiss watch otherwise. It is just as likely that smartwatches appeal to people who would not be interested in buying Swiss made watches anyway.

What’s Next For Smartwatches?

Swiss Made Watches

It has been predicted that a successor to the Apple Watch may be just around the corner. This would certainly be the biggest smartwatch release in 2016 and would cement Apple’s place at the top of the smartwatch tree.

Casio are also entering the smartwatch market at the end of March with the Casio WSD-F10, the smart outdoor watch. This watch is a full Android watch aimed at those who love the outdoors. It will be interesting to see how Casio’s release performs in comparison to other smartwatch manufacturers. Especially as Casio have gone with a very traditional watch design rather than the typical little black screen.

Samsung have already released their newest offering, the Samsung Gear 2, but expect this to be pushed strong over the next few months. It is likely that a newer offering will hit shelves by the end of 2016 in order to compete with the Apple Watch 2 at Christmas.

What’s Next For Swiss Made Watches?

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The most important date in the Swiss made watches calendar is just around the corner as we await Baselworld 2016. All of the top Swiss watch manufacturers will descend on the Messe Basel between the 17th and 24th of March.

There will certainly be a lot to look forward to at this years edition of Baselworld as all of the top manufacturers will be there. It is unlikely that many (if any) Swiss manufacturers will be looking to directly compete with smartwatches this year by releasing their own smartwatches.

However it is important to note that many observers, including Neil Mawson of Strategy Analytics, have suggested that Swiss manufacturers have been slow to react to the development of smartwatches. He said “The Swiss watch industry has been sticking its head in the sand and hoping smartwatches will go away…and they are long way behind Apple, Samsung and other leaders in the high-growth smartwatch category.”

Whether of not this is another “quartz crisis” is something we do not yet know. But many will hope that Baselworld will produce some announcements which go some way to fighting the smartwatch threat.

Images: Raysonho, Alexsh, MMuzammils, Fourdee,

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