Swatch gets smarter in face of looming Apple Watch threat
Swatch's products to enable mobile payments after co-founder warns of 'Ice Age' for watchmakers
Swatch, the world's bestselling watch manufacturer, has announced plans to include "smart" functions in its products amid looming pressure from the Apple Watch.
Experts have warned that Apple's high-tech smartwatch, which will go on sale in nine countries from April, could result in big losses for traditional Swiss watchmakers.Instead of launching a dedicated smartwatch, Swatch has announced plans to feature wireless technology, known as near-field communications (NFC), in its products, enabling users to make mobile payments from their watches. The first of the tech-enhanced timepieces will go on sale in May, says the BBC.Swatch Group has already signed a payments deal with China UnionPay, a bank-card association in China, as well as deals with a Swiss bank and a big credit-card company, which are yet to be identified.The Washington Post says Swatch is particularly vulnerable to losses because it generates about a third of its revenue from low and mid-market brands.Luca Solca, an analyst at Exane BNP Paribas, estimates that smartwatches could take as much as 10 per cent of the company's entry-level plastic brand and five per cent of its mid-market brands in 2015, knocking around £500m or five per cent from annual net sales.Nick Hayek, chief executive of Swatch Group, has previously been dismissive about smartwatches, criticising their small screens, weak batteries and inelegant designs."We are not a consumer technology company," he said yesterday. "We don't want to produce a reduced, minimised mobile phone on your wrist."However, he admitted that the Apple Watch was the nicest smartwatch he had seen and insisted there was room for both Swatch and Apple products on the market.He also announced a new line of watches, called Swatch Touch, which will incorporate functions such as a step counter.
Earlier in the week, Swatch co-founder Elmar Mock said the Apple Watch will "put a lot of pressure on the traditional watch industry and jobs in Switzerland", suggesting that the industry as a whole had been underestimating the threat. "I do expect an Ice Age coming toward us," he warned.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
The Vietnamese migrants crossing the Channel
The Explainer 2024 has seen a surge in the numbers of Vietnamese migrants making the illegal passage into the UK
By Richard Windsor, The Week UK Published
-
How to make the most of your leftover pumpkins
The Week Recommends As the Halloween fun wraps up, snap up pumpkins still on sale and don't leave your jack-o-lanterns to rot
By Tess Foley-Cox Published
-
How Harris and Trump differ on education
The Explainer Trump wants to disband the Department of Education. Harris wants to boost teacher pay.
By Joel Mathis, The Week US Published
-
Why Apple's carbon-neutral claims may be misleading
Speed Read The company isn't disclosing all the information, a new report alleges
By Devika Rao Published
-
How cybercriminals are hacking into the heart of the US economy
Speed Read Ransomware attacks have become a global epidemic, with more than $18.6bn paid in ransoms in 2020
By The Week Staff Last updated
-
Language-learning apps speak the right lingo for UK subscribers
Speed Read Locked-down Brits turn to online lessons as a new hobby and way to upskill
By Mike Starling Published
-
Brexit-hobbled Britain ‘still tech powerhouse of Europe’
Speed Read New research shows that UK start-ups have won more funding than France and Germany combined over past year
By Mike Starling Published
-
Playing Cupid during Covid: Tinder reveals Britain’s top chat-up lines of the year
Speed Read Prince Harry, Meghan Markle and Dominic Cummings among most talked-about celebs on the dating app
By Joe Evans Last updated
-
Brits sending one less email a day would cut carbon emissions by 16,000 tonnes
Speed Read UK research suggests unnecessary online chatter increases climate change
By Joe Evans Published
-
Reach for the Moon: Nokia and Nasa to build 4G lunar network
Speed Read Deal is part of the US space agency’s plan to establish human settlements on the lunar surface
By Mike Starling Last updated
-
iPhone 12 launch: what we learned from the Apple ‘Hi, Speed’ event
Speed Read Tech giant unveils new 5G smartphone line-up
By Mike Starling Last updated