The market expects Rolex’s sales in 2024 to surpass those of the Apple Watch, reclaiming the title of “world’s number one.”

As sales of the Apple Watch saw a decline of about 20% in the first quarter of 2024, traditional luxury watch brand Rolex is expected to reclaim its position at the top of global watch sales. Swiss watch expert Oliver R. Müller pointed out that this change is influenced by several factors.

Surge in Demand: The Rise of the New Wealthy in Cryptocurrency

With the boom in the cryptocurrency market, many young investors have begun to view Rolex as a luxury item for self-reward. According to data from Morgan Stanley x LuxeConsult, Rolex’s sales reached 15.15 billion Swiss francs in 2023. While Apple Watch sales amounted to 16.05 billion Swiss francs, the demand for Rolex continues to rise.

Pricing Strategy: Successfully Transferring Costs

Rolex has adopted a price increase strategy to cope with exchange rate fluctuations and rising costs, shifting its core collection towards higher-value metals and gemstones, effectively boosting its average selling price.

 

Market Competition: Apple Watch Faces Challenges

On the other hand, the Apple Watch has been affected by patent disputes with Masimo, impacting the sales of some products and leading to a decline in shipments in the first quarter of 2024. According to data from TechInsights, the shipment volume of the Apple Watch also shows a downward trend in the second quarter.

Müller predicts that, due to these factors, Rolex’s sales will surpass those of the Apple Watch this year, reclaiming the “world’s number one” title lost since 2017. He noted that this is not only a business victory but also a significant milestone for the traditional watchmaking industry.

Although smartwatches will continue to be popular, their main appeal lies in functionality, while traditional watches attract consumers with their craftsmanship and timeless value.