Swiss luxury watchmakers are making more money and selling fewer watches as the industry shifts away from affordable timepieces, with the focus on specific watch models. For affordable brands, sales are falling. Sales of Swiss timepieces reached a new high in 2021, with their export value topping $21.5 billion. At the same time, industry figures show this record value came from selling half as many units last year as were sold a decade ago.
At Patek Philippe, the Nautilus Ref 5711, which originally retailed for $30,000, but now easily commands six figures. Patek’s president Thierry Stern said “I have still no idea why suddenly, the success [of this watch] came so fast and went so high, but what I know is that I do not want to be a mono-product company. So this is why I stopped the 5711. We made enough of it.”
For all of the beauty and craftsmanship that goes into a $500 Swiss watch, those are generally competing with something that’s both more utilitarian and multifunctional, the Apple Watch.
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