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Video: Apple Watch Overtakes Rolex As World’s Most Popular Timepiece; Sales Expected To Double | September 13, 2017 (0 comments)
Cupertino, CA—The almost-unthinkable has happened: Apple Watch has overtaken Rolex as the world's most popular watch. The news broke Tuesday along with this week’s much-anticipiated unveiling of both the iPhone 8 and the premium-priced iPhone X.
Attendees at the September 12 launch event at Apple headquarters in Cupertino, CA, were stunned when Apple CEO Tim Cook announced that sales of the Apple Watch had both leapt 50% year on year for the quarter ended in August—and overtaken Rolex as the number-one watch brand.
Cook last year said Apple was the number-two watch brand in the world behind Rolex, something analysts agreed was entirely plausible. At the time, Apple had just released its Watch Series 2, with added smart features such as water resistance and a GPS feature. The high-tech features in the Series 2 clearly resonated with consumers and kicked it ahead of brands like Cartier and Omega. Apple also upped its game in the luxury market last year by collaborating with luxury brand Hermès to create a premium-priced high-fashion version of the watch. Left, top of page: a new Hermès strap option for the watch.
CEO Tim Cook announces Apple has overtaken Rolex as the number-one watch brand in the world. While neither company releases sales figures to verify the claim, analysts agree it's likely true.
While neither Apple nor Rolex releases sales figures, analysts estimate Apple sold close to 12 million timepieces last year, and Swiss watch exports overall declined 10% in 2016. While Rolex probably fared better than other Swiss luxury brands, it’s still likely to have been impacted somewhat. Meanwhile, the Apple watch is just gobbling up market share, and according to an article on Reuters.com, at least one analyst already is predicting sales will more than double with the release of the Series 3.
The Watch Series 3 goes full-on Dick Tracy: it will have cellular service allowing users to make calls directly from the watch without having their cellphone tethered nearby. It also will stream music via cellular, and allow wearers to access Siri, Apple’s voice-activated personal assistant. It will include all the features the watch already offers, such as Apple Pay and the ability to wear it while swimming. Despite the additional capabilities, the new watch features a faster processor and better battery life, but the case size remains the same and pricing is comparable to prior models: $399 with the cellular feature and $329 without. Pre-orders will be taken starting Friday for a September 22 general release.
Click here or on the image below to watch Apple COO Jeff Williams demonstrate the watch to attendees.
Apple also renewed its partnership with Hermès, although it downplayed the fashion element during the presentation in favor of emphasizing the fitness aspect of its watches, to better compete with Fitbit and other popular wearables positioned more affordably than the Apple Watch.
Apple has broadened its multi-tier strategy for its iPhones to include luxury. The company several years ago departed from its one-version strategy and began introducing different tiers of phones with different capabilities, to target both affluent and bargain-seeking customers. But until now it didn’t offer a truly premium option, although its most advanced models cost upwards of $700. The new iPhone X starts at $999, incorporates cutting-edge high-tech features such as facial recognition software and an edge-to-edge screen. It's clearly targeted to the luxury consumer that competitors such as Vertu and Turing were trying to woo away with little success. Those customers, rather than switch, simply upgraded their iPhones. Now, it seems, competitors will have an even tougher task.