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Swiss watchmakers gear up to compete with Apple Watch, could see sales boost

Although Swiss watchmakers have sometimes been passive or even resistant in response to smartwatches like the Apple Watch, the companies are said to be working on smartwatches of their own and could even see a boost to sales of traditional luxury models.

Major firms such as Richemont, Guess, LVMH (Louis Vuitton Moet Hennessy), and Swatch have all been working on smartwatches during the past year, according to Reuters. The companies are hoping they will be able to counteract, or perhaps even capitalize on, the buzz for the forthcoming Apple Watch.

The Swiss watchmakers' efforts were all previously known, but are again garnering attention because of this week's Apple Watch event. For example, the Swatch effort will support wireless payments, like the Apple Watch. Two reported differences are that it should have a longer-lasting battery and support both iPhones and Android devices.

In January, Richemont's Montblanc subsidiary launched the TimeWalker Urban Speed, which is actually a mechanical watch boosted by an interchangeable, Bluetooth-enabled strap. Guess is launching the Guess Connect line later this year, which will pair with iPhones or Android devices, support voice commands, and work with existing mobile apps.

A CCS Insight analyst, Ben Wood, told Reuters that Swiss watchmakers could actually benefit from the Apple Watch, since it may spark new interest in watches among people who are otherwise used to telling the time from their phones.

Berenberg Bank analysts also said that the smartwatch market has limits, since unlike a conventional watch the expectation is that a smartwatch will be upgraded frequently and quickly lose its value. Rolex's flagship mechnanical watch, the Submariner, has actually increased in value.

Publicly, Swiss watchmakers have had a number of different takes on the Apple Watch. For example, Swatch co-inventor Elmar Mock said this week that Apple's wearable device "will put a lot of pressure on the traditional watch industry and jobs in Switzerland."

Last September, when the Apple Watch was first announced, Tag Heuer head Jean-Claude Biver dismissed the device as having "no sex appeal," and being "too feminine." He later backpedaled in January, however, calling Apple's device "an incredible achievement."