There are many opinions out there on the new smartwatch trend. While this started with the Apple Watch, then Montblanc’s announcement of their e-Strap, it was only a matter of time before a major Swiss manufacture created their own smartwatch. That time has come with the announcement of the TAG Heuer Smartwatch. This is a bold move from a luxury brand. Considering the volatility of the watch industry and the Apple Watch’s inevitable cornering of the smartwatch market, TAG Heuer may be biting off more than they can chew.
As we discussed with our articles on the Apple Watch and the e-Strap, they aren’t going to revolutionize or take over the industry (at least not yet for Apple), but they may have a role to play. Apple will play towards their existing fanbase who will buy just about anything they make, and Montblanc seems focused on a derivative accessory. I don’t think that the TAG’s upcoming smartwatch will be able to overcome the Apple Watch in the market as a whole, but what TAG can do is focus on those within the luxury watch market who may want a smartwatch and one that can do more than what the e-Strap can provide.
Montblanc e-Strap
The details are few and far between, but what we do know is that it will powered by an Intel processor and feature both electronic (and here’s the kicker) mechanical parts. The fact that this will be the first smartwatch from a major Swiss manufacture has much deeper implications to the industry we know and love than the Apple Watch. A spokesman for TAG Heuer claims that they intend to create a product that is much different than Apple’s, which is a good thing. Not only would they have difficulty competing against Apple’s watch in the broader electronics market but they also have the very specific and unique watch market to worry about. TAG’s watch will come under more scrutiny from watch collectors, enthusiasts, and journalists than the Apple Watch, as it’s the first major response to the smartwatch market from a Swiss manufacturer. TAG Heuer has their work cut out for them, and for their sake, they need to realize this and capitalize on it.
Apple Watch
Price point will come into play as well. The Apple Watch is $350. Montblanc’s e-Strap will come in at $300 (sans watch). What will be the cost of a smartwatch from a manufacture whose mechanical watches cost several thousand dollars? Specifically one that will apparently be partly mechanical? It will be tough to compete if it’s even close to $1,000 let alone more than that. If that’s the case then it will appeal to the wealthier consumer, but then that also surpasses the price of the most expensive phone; and the people who can afford that will be unlikely to wear a smartwatch in place of their $10,000, 30,000, or $50,000 dollar watch.
I personally do not think a full-on smartwatch from a luxury brand is the best idea. Montblanc’s e-Strap is more feasible in this industry of ours as a supplement and companion to the mechanical watch instead of a total replacement. Like I said, TAG Heuer has their work cut out for them, but I’m sure they know that. It will be very interesting to see the finished product.
Tell us your thoughts in the comments.
by 
Chris
I’ll be curious to see what comes out of it, even if that curiosity is mostly of the trainwreck variety. Remember the Ulysse Nardin smart phone? It was a blinged Android phone at for $14,000. I don’t think that did anything to help UN’s brand.
I suspect that TAG also has to go pricey with this so as to avoid diluting the brand image they’ve been desperately trying to cultivate. Otherwise, they may as well bring back those cheap and nasty plastic Forumula 1 models.