Apple can Remove itself from the Nasdaq
Pfäffikon SZ, Switzerland – Initially I wasn’t planning on addressing Apple’s latest product launch. When even the local radio station in Luzern – Radio Pilatus – talks of nothing else but the new apple products, the information overkill regarding Apple becomes more than apparent. It’s quite a feat which Apple pulls off, getting the entire world to talk about their launch. How does Apple get people that crazy? In my opinion, there are currently other pressing matters deserving more attention.
Sensitive
That is to say, the launch of a watch by one of the world’s most powerful corporations is a sensitive matter here in Switzerland. It is worth noting that apple tried approaching the traditional Swiss watch makers. However, the Swiss aren’t particularly interested in Apple interfering. This is understandable since the iWatch poses little threat to, for instance, Vacheron Constantin that has been crafting watches since 1775.
Luxury Brand
What I’m missing in the deluge of comments on Apple Pay, the new iPhone 6 and the launch of the iWatch is that Apple is trying its very best to become a luxury brand. In and of itself I find this an incredibly intelligent strategy. An iPhone is seen by many as a status symbol. One purchases it even if doesn’t quite fit into one’s monthly allowance. This all is to the credit of Apple.
Already, Apple does not seem at place on the technologically tinted Nasdaq. First, former CEO of Burberry – Angela Ahrendts – for a large sum of money, made the move to Apple. More recently, Patrick Pruniaux form TAG Heuer also chose Apple. In this manner Apple wants to underline its ambitions and master the intricacies of the luxury industry. But what Ahrendts and Pruniaux should know is that brands such as Rolex, IWC or Jaeger-LeCoultre cannot be copied, not even by Apple.
No Sex Appeal
Jean-Claude Bivier from LVMH was quite frank this week. He thinks that the iWatch has no sex appeal. “To be totally honest, it looks like it was designed by a student in their first trimester,” according to Bivier. But also Nicolas Hayek – CEO of Swatch, the largest watch maker in the world informs us he was “not nervous” about Apple’s drive. Still, the luxury brands were put under pressure this week on the international markets, which might result in opportunities.
Casio
The launch of the iWatch reminds me of the Casio era from last century. Moreover, it is becoming clear that one of the world’s richest corporations is having difficulties in launching truly innovative products. The iWatch – with all due respect – is not the product that will help Apple ten years into the future. The carefully crafted hype will undoubtedly create much demand, but in the long run it will most likely turn out that a traditional watch can easily withstand the test of time. For that is the power of a luxury brand. Regarding the iWatch’s ability to pull this off, I remain doubtful.
It remains for me to wish you a good weekend.
Jan Dwarshuis is a senior asset manager at Thirteen Asset Management AG, where he is responsible for the Thirteen Diversified Fund. Dwarshuis writes his columns in a personal capacity and is not paid for them. Nor is he paying for his columns to be placed. Professionally, he holds positions in major European, American and Russian stock funds. The information in his columns is not intended as professional investment advice or a recommendation to make certain investments. At the time of writing, he has position in Richemont and has no position in the other above shares mentioned and has no intention of doing so in the next 72 hours.
