Apple launched its version of a wearable watch last week. The Economist took a look at what this means for watchmakers:

• Apple is confident that it’s about to upend the watch business. Apple’s design chief has boasted about the trouble that the Swiss are in.
• Watchmakers themselves don’t seem worried. Wrists are prime real estate, especially for men where watches essentially serve as the only socially acceptable form of jewelry.
• The Apple watch lacks the style of traditional watches. Watchmakers point out that the first Apple watch will be obsolete in a year, while watchmakers sell “eternity in a box”.
• In fact, the Apple Watch may even be a boon to watchmakers as it may get the young more used to wearing watches.
• And Apple customers might be too low class for establishment players to target anyway. Watches costing less than $500 make up just 6% of revenues in the industry.

Read more about the types of watches that are most threatened, what Apple is doing to make the watches more of a fashion statement, and more over here.

Source: The Economist