Swatch share price
Swatch Group shares fell a bit on concerns that the Apple Watch is going to take away some customers from the company. This week, Apple launched its latest model of the smart watch. The cost started at 329 USD and was an integral part of increased shares for Swatch.
John Cox, an analyst for Kepler Cheuvreux, says that that the new watch is a game changer. “It could be a similar situation to when the iPod first came along,” he says. “People have started to stop carrying around iPods and digital music in the form of iTunes. Instead, they’re starting to rely on wrist watches with advanced functions like precise timekeeping.”
Cupertino, California-made Apple Watch is eating into the market share of low and high priced watches, according to industry experts. As such, they haven’t been affected as much by this widespread adoption of smartwatches. Swatch is a Swiss brand that creates watches in varying price ranges. Some of the more affordable models include $50 plastic watches, while the upscale ones include Tissot. In 2016, their exports of quartz watches fell, but they are still the largest country in this industry.
“Smart watches are not a passing fad, they are here to stay and will continue to upgrade their functionality – the new Apple Watch proves it,” argues Luka Solka, an analyst at Exane BNP. It’s clear that smartwatches have a lot of potential and will continue to rise in popularity in the near future.
Fossil Group, Movado, and Fitbit are among the most affected companies by smart watches
Last March, the Swatch Group announced that they had developed an alternative to the iOS and Android on the market for smart watches. Tissot has developed its own software to reduce power consumption and improve the data protection of its wearables, so it’ll be in stores later this year.
You can read another article about smartwatches here.
Author: PC-GR
The World of Technology
