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Chronicles

The story behind the story

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Swiss watchmakers Montblanc, Ateliers deMonaco, and H. Moser adopt very different strategies to compete with the Apple Watch

Can the Swiss Watchmaker Survive the Digital Age?  —  Masters of one of the world's most revered forms of analog craftsmanship take on the smartwatch.

New York Times Clive Thompson

Context & Ripple Effects

By mid-2015 the Swiss watch industry was already splitting into camps: some maisons had launched luxury smartwatches with embedded activity tracking on an open platform, while the co-inventor of the Swatch publicly warned that Apple would succeed and an "Ice Age" was coming for Swiss watches. TAG Heuer chose a third path, partnering with Google and Intel on a luxury Android Wear device.

This New York Times piece captures Montblanc, Ateliers deMonaco, and H. Moser making three different bets at that fork — and the subsequent quarter validated the stakes, with smartwatches outselling Swiss watches for the first time in late 2015 while Apple took the majority of smartwatch shipments.

First-order effects

  • Montblanc, Ateliers deMonaco, and H. Moser each commit to a distinct competitive posture against the Apple Watch — embrace the connected device, hybridize, or double down on analog craftsmanship — rather than a single industry response.
  • TAG Heuer's Google-and-Intel alliance sets an immediate benchmark: any Swiss maison entering smartwatches must now choose between licensing a big-tech platform or building its own.

Second-order effects

  • Platform owners like Google and Intel gain pricing and specification power over luxury hardware partners, mirroring the smartphone dynamic where the OS vendor captures more value than the case maker.
  • Apple's dominance of smartwatch shipments pressures mid-tier Swiss brands hardest, since their buyers overlap most with first-time smartwatch purchasers, pushing them toward either differentiation or discounting.

Third-order effects

  • If the pattern holds, Swiss watchmaking bifurcates structurally into platform-licensed tech brands and heritage analog houses, with the middle market hollowed out.
  • Design protection follows the product into software — as later shown by Swatch seeking $170M from Samsung over cloned digital watch face designs — meaning brand defense for watchmakers now includes app stores, not just dials.

The trend: Luxury watchmaking is fragmenting into platform adopters and analog purists, with big-tech operating systems setting the terms for whichever half digitizes.