Article written by VOLF.TV TEAM , content strategy and produced by Manjeet Bhatt.
Apple Inc. has officially become the world’s biggest watchmaker, surpassing traditional Swiss brands, such as Rolex, and other smartwatch manufacturers, including Samsung and Misfit. Apple’s CEO, Tim Cook, made the groundbreaking announcement on Tuesday, heralding the Apple Watch as the top-selling watch globally.
The Rise of the Apple Watch
Apple’s impressive ascent to the top of the watch industry charts has been remarkable. Last year alone, consumers worldwide purchased a staggering 21.1 million smartwatches, according to industry trackers Strategy Analytics. While the smartwatch market has grown substantially, it’s Apple that has dominated, leaving Swiss watchmakers trailing behind.
The company’s flagship product, the Apple Watch, has not only conquered the smartwatch market but has also redefined the traditional watch industry. Apple’s commitment to innovation and consumer-focused design has propelled it to this milestone.
Apple’s Watch Revenue Soars
According to estimates from research firm Asymco, Apple has sold approximately 15 million watches in the past 12 months, at an average price of $330 per unit. This translates to a staggering $4.9 billion in revenue from its watch segment. In comparison, Swiss watchmaking giant Rolex SA, which held the top position in 2016, sold a mere 1 million watches last year, with revenues of $4.7 billion.
Apple’s claim to the throne is not just a fleeting victory. Asymco estimates that Apple has sold a total of 33 million Apple Watches, generating a remarkable $12 billion in revenue since the product’s launch. Sales of the device increased by 50% during the June quarter compared to the previous period, reflecting the product’s growing popularity.
The Apple Watch Series 3, which includes a built-in cellular connection, has garnered positive reviews from both critics and experts, driving its appeal further.
A Healthcare and Lifestyle Device
Apple has strategically positioned the Apple Watch as a healthcare device and invested substantially in research to demonstrate its health benefits. However, the device also extends Apple’s reach into various aspects of users’ lives and reduces the company’s dependence on the iPhone. The Apple Watch Series 3 enables users to receive phone calls, play music, and message contacts, effectively expanding its functionality and appeal.
Apple’s CEO Tim Cook highlighted that the Apple Watch is effectively “stealing usage” from the iPhone, indicating its potential to stand alone as a significant revenue generator. The device’s influence is not limited to timekeeping but extends to various aspects of daily life.
A Challenge to Swiss Watchmakers
Apple’s remarkable achievement not only signifies its dominance in the smartwatch sector but also serves as a challenge to traditional Swiss watchmakers. According to sales estimates compiled by Strategy Analytics, Apple shipped nearly 31 million Apple Watches in 2019, marking a 36% increase over the previous year. In contrast, the Swiss watch industry, which includes renowned brands like Swatch and TAG Heuer, shipped an estimated 21.1 million units, representing a 13% decline.
Analog wristwatches continue to be favored by older consumers, but younger buyers are increasingly leaning toward smartwatches and digital wristwear. Traditional Swiss watch brands, despite their reputation, are struggling to compete in the smartwatch arena.
Some Swiss watch brands have responded to the Apple Watch’s threat by introducing their own smartwatches, including hybrid models that combine mechanical watches with connected features. Notable brands like TAG Heuer, Tissot, Frederique Constant, and Movado have ventured into this space to maintain their relevance.
The Apple Watch has evolved into a cultural phenomenon and a testament to Apple’s innovation, setting new standards for the watch industry. With its focus on health, lifestyle, and technological integration, the Apple Watch has solidified its position as the world’s premier watch, signaling a shift in consumer preferences and the future of wristwear technology.
This article has been written by VOLF.TV TEAM , content strategy and produced by Manjeet Bhatt.
