Blog - iWatch: "Switzerland is in trouble"

11/11/2014 iWatch: “Switzerland is in trouble!” | Transformation Hydraulics

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Transformation Hydraulics

THOUGHTS ON BUSINESS STRATEGY, AND HOW TO MAKE ITWORK. BY NICOLAS SCHOBINGER.

As Apple gets to its September 9 media event, the headlines are likelyto be stolen by its iWatch smartwatch announcement, which, as mytitle suggests, stands to disrupt a certain country’s wellknown watchindustry.

My title is a direct quote from Apple’s Head of Design, Sir Jonathan“Jony” Ive, from last week’s article on wearable devices in the NewYork Times.

This statement from a usually understated Brit with firsthandknowledge of the iWatch, should ring some alarm bells in the Swisswatchmaking industry, indeed the whole country. And it did to somedegrees as you can see here, here, here, or here.

Swiss watch makers appear to view the iWatch as an opportunity, notas a threat. Take LVMH’s JeanClaude Biver, the CEO of Swatch, whothinks that

iWatch: “Switzerland is in trouble!” 1

the arrival of new products is a fantastic opportunity to reach

Sep

08



Can Swiss watchmakers ever be big players in smartwatches? Not

really. They have tried before (eg Swatch & Microsoft) and they have

all the technologies (eg Rado/Swatch for thin cases, Tissot for touch

technologies and sensors, and Rolex/Swatch for manufacturing

automation, etc). But to be successful, you need more: platforms,

ecosystem and infrastructure. And actually HUGE ones only few

companies can build – Google, Facebook, Amazon, and Apple.

Can they simply sit at the sideline waiting for a bandwagon effect or

for these millions of projected smartwatch wearers to move up to more

classic watches? Not really. I think this is too passive.

How about the iWatch being built in Switzerland?

In an earlier post I laid out what a Swissmade iWatch would mean for

Switzerland as a country. I projected it would double the Swiss watch

exports within 12 months, lead to material GDPgrowth, create more

jobs, and enable technology transfer. I even predicted Apple could

possibly become the biggest Swiss watch brand by volume and value

in just its first year on the market.

So, is Switzerland in trouble? We will see.

Worst: The iWatch will be produced outside of Switzerland. They get

the full competition, but no benefits nor windfall profits.

Best: The iWatch is Swissmade, and the Swiss watchmaking industry

collaborates heavily in the creation, manufacturing, and maybe even

marketing of the iWatch.

Copyright 2014 Nicolas Schobinger. All Rights Reserved.

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ONE THOUGHT ON “IWATCH: “SWITZERLAND IS IN TROUBLE!””

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Posted in Smart Watches, Transformation

Tagged Apple Watch, swiss made

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iWatch &Switzerland: Thisall happenedbefore

Could a 'Swissmade' iWatch aloneadd 1%point ofGDP toSwitzerland?

Eternal vs.Ephemeral[updated]

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STEVEN— SEPTEMBER 28, 2014 AT 05:50 Edit

I thinkt this is going to be great for the Swiss watch industry. Theirproblem to this point has been generations of people not wearingwatches at all. I personally have not worn a watch in 12, 13 years.However, the smartwatch hype has the potential to actually drawpeople beyond the trend and into the world of highend timepieces. Forexample, until the furor over “iWatch,” I was completely unaware ofthe world of “horology.” I knew expensive watches existed, but thatwas about the extent of it. Now I’m familiar with names like PatekPhilippe and Audemars Piguet and the tremendous history and culturesurrounding these and other luxury watch brands.So no, I don’t believe that the Swiss are in any more trouble than theywere previously, but alot depends upon how they react to thesituation. I think that Apple Watch customers will present atremendous target market for the Swiss to lure into the world ofupscale watches.

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