Apple has gobbled up yet another technology industry, and this time, it is the Swiss watch industry. Unless you have been living under a rock the last year, you know about the Apple Watch. This is the company’s version of a smartwatch, so they have a good amount of interest in this. A retail data firm, Strategy Analytics, defines the Swiss watch industry as wristwatches that are shipped from Switzerland. Well, they are now overtaken by Apple and here are the primary reasons why.
FIRST REASON: THEY FELL BEHIND IN SALES
As the Strategy Analytics data firm points out, the watchmakers of the Swiss watch were falling behind in sales in the fourth quarter. This was the first time they had experienced this, and customers were migrating towards different smartwatch options. It’s a simple fact that if a company can’t maintain their revenue, then they are going to end up falling.
SECOND REASON: SMARTWATCHES ARE BECOMING THE TREND
One great example that proves that smartwatches are becoming the current trend in the world is what Fossil Group Inc. did. In the fourth quarter of last year, they acquired the wearable fitness company, Misfit. They then said that they were planning on making over 100 connected products this year. Not only this but Fitbit Inc., another fitness company that focuses on wearable devices, is also planning on shipping their new smartwatch this year.
THIRD REASON: THE INDUSTRY WAS VERY SLOW TO REACT
An executive director at Strategy Analytics, Neil Mawston, noted how the Swiss watch industry was not very fast in reacting to the development of smart watches. Not only this but another factor that did not help was the demand in Hong Kong and China for smartwatches was going down. Overall, this is not much of a surprise, and it is really no surprise that Apple was responsible.
