Dan Frommer: ‘Why Swiss Smartwatches Have No Chance Against the Apple Watch’

Dan Frommer, Quartz:

Ironically, if the Apple Watch is successful — and has any negative impact in Switzerland — it will be because Apple as a company follows the same tight, vertical integration that the Swiss watch industry does for its core product, mechanical watches.

Since the 1990s, watch companies “have been making increasing efforts to in-source as many steps in the production process as possible,” ranging from individual watch components to retail distribution, according to a Credit Suisse report on the Swiss watch industry. “The manufacturers’ objective is to have the greatest possible control over the entire value chain and to decrease their dependence on external suppliers.”

★ Friday, 20 March 2015