A luxury mechanical timepiece is a feat of engineering excellence and in most cases an object of aesthetic mechanical beauty. They are mostly purchased by wealthy individuals for their engineering prowess, heritage and style. Performing a little research, I find that Swiss watch sales account for just 1.7% of international sales yet account for approximately 57% of the value of watch sales - that's some serious value adding.
What we are comparing here is two totally different market segments despite both being wristwatches. Just as the quartz watch disrupted the mechanical watch industry in the 1970s, the tool watch of the previous era reinvented itself into the luxury timepiece segment. People with high disposable incomes are looking for more than just a tool to tell time, they are seeking brand recognition, style and engineering prowess highly valuing the mechanical timepiece.
The smartphone that is current technology is already in decline, Nokia, Errikson and Motorola phones are no longer for sale - the Blackberry is also history. Payment systems are now contained in rings, people are already getting micro-chipped and other devices will emerge, the smartphone as we know it will be around for a little longer yet .
Whilst Rolex, Omega, Breitling, Rado, TAG Heuer, Tissot and Longines are all well known brands forming the bulk of Swiss watch sales figures, they are not the elite timepieces. The serious timepiece manufacturers of Patek Phillipe, Vacheron Constantin, Audemars Piguet, Breguet, Blancpain, Jaeger LeCoultre, Chopard, IWC, Cartier and A. Lange & Söhne are lessor known outside of the timepiece community yet they are the pinnacle of engineering design.
Just as the fashion watch didn't destroy the luxury watch industry, brands such as Hugo Boss, Daniel Wellington, Fossil, Michael Kors, Guess, Diesel, Armani, DKNY, Marc Jacobs, Swatch and Lacoste all fulfill a need.
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