Part of a series on Smartwatches' possible impact, notably the AppleWatch, on the swiss watch industry. How the AppleWatch might eat even into the upper segments of swiss watchmakers like Omega.

1. 11/11/2014 Eternal vs. Ephemeral [updated] | Transformation Hydraulics
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THOUGHTS ON BUSINESS STRATEGY, AND HOW TO MAKE IT
WORK. BY NICOLAS SCHOBINGER.
Eternal vs. Ephemeral [updated] 5
[Update: Changing iWatch to 'Apple Watch'.
Thanks @chrisbintliff, @AeroEchelon, aaronbrager, and others for
making me aware that pots­launch
'iWatch' was not the right term to
use anymore.]
The Apple Watch starting price for its brand Sport version will be about
$349 – and will pose a direct threat of disrupting Swiss and Asian
brands in this price segment.
There will be also a massive gold upscale variation being called the
Apple Watch Edition. While official pricing has not yet been announced,
estimations vary widely from $1,200, $4,999, or up to $9,999 (take a
look at this good summary here). The latter price­point
seems
especially interesting – that’s around the same price­points
you now
from luxury brands like Omega, Tag Heuer, maybe even Rolex.
So, from Apple to Swiss, pricing may be comparable. But can you
really compare the actual products?
Sep
24
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2. 11/11/2014 Eternal vs. Ephemeral [updated] | Transformation Hydraulics
For instance, the Swiss watch industry, according to LVMH’s Jean­Marc
Biver, positions itself as selling “eternity in a box”. Theirs are heirloom
pieces that can last and function forever. The technical half­life
of an
Apple Watch is going to be a few years at best. Add to this the fashion
effect, which may shorten its life­span
even more. Unlike its eternal
Swiss counterparts, Apple seems to be embracing the “ephemeral”.
Eternal vs. Ephemeral. Are (or even can) these two concepts actually
be in competition against each other?
How often does one need to buy an ‘eternal’ product? How often would
you buy ‘ephemeral’? Look at iPod, iPhone, and even computers in
general. Technology advancements and rapid innovation cycles make
you lust for the newest gadget. And that’s just it: Ephemeral product
lures customers to the next best thing.
I can easily image, that Apple could extract a higher lifetime
customer value with its Apple Watch Edition, than the ‘eternal’
brands of Swiss watchmaking.
I could imagine that the Apple Watch Edition will generate a lot of
repeat buyers. A good trade­in
program would recycle your precious
metal and refund that to you. You could keep the straps. The price for
your repeat purchase could be then a fraction of your initial buy. You
could constantly renew your statement with the Edition line and stay
current. Ephemeral disrupting Eternal.
Indeed, I think the whole Apple Watch affair is going to ripple out
much broader than from what was initially unveiled September 9.
Swiss watchmakers, eyes wide open, have let it get this far, largely
undisturbed and unchecked. Let’s watch how this unfolds.
Copyright 2014 Nicolas Schobinger. All Rights Reserved.
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3. 11/11/2014 Eternal vs. Ephemeral [updated] | Transformation Hydraulics
One blogger likes this.
Related
Could a 'Swiss
made' iWatch alone
add 1%­point
of
GDP to
Switzerland?
iWatch
Switzerland: This
all happened
before
In Smart
Watches
In Smart
Watches
Posted in Smart Watches, Transformation
Tagged Apple Watch, swiss made
Edit
iWatch:
“Switzerland is in
trouble!”
In Smart
Watches
5 THOUGHTS ON “ETERNAL VS. EPHEMERAL [UPDATED]”
dr.oop
— SEPTEMBER 28, 2014 AT 04:05 Edit
All Apple needs to do is 10 year warranty.
I believe that is what watch manufacturer also offer the same.
Which just means a battery change in 5 years in case of Watch.
S1 is not going to change every year.
S1 can only change if all the support chips move to lower voltage or
chip processing node. That doesn’t happen often.
S1 is not going to get powerful unless new battery tech is also
introduced.
Apple may tinker with straps or shapes and colors every year just for
the fashion
but the heart doesn’t change.
If the Watch can sell in 20 million range every then chip
manufactuers will shrink their chips. Just remember chip tech is at 20
nm right now. can get to 16 nm in two years but all the support chips
are probably in 45 nm or higher. Unless Apple pays for this privilege
that won’t change unless economics dictate it.
Reply
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4. 11/11/2014 Eternal vs. Ephemeral [updated] | Transformation Hydraulics
Anonymous
— SEPTEMBER 29, 2014 AT 23:02 Edit
I think you’re wrong on the chip front. I think the S1 will very
easily become the S2 in a year or so, and move to an annual
basis very quickly. Apple is thinking about more than just a
Watch here. I would be surprised if they don’t have several
devices in the pipeline that use the S1, or something like it.
Pingback: Eternal vs. Ephemeral | SI Services Edit
Anonymous
— SEPTEMBER 27, 2014 AT 21:33 Edit
It’s Apple ‘Watch’ not ‘iWatch’.
Reply
aaronbrager
— SEPTEMBER 27, 2014 AT 21:19 Edit
I agree with your assessment – there will be some type of trade in
program (whether or not Apple runs it).
Btw, it’s called “Apple Watch” not “Apple iWatch”.
Reply
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