SWATCH

Trading short into tonight’s Apple event

 

• Swiss watch industry post an iWatch launch is compared to Blackberry’s demise, post the Apple iPhone introduction. Jonathan Ive, chief designer at Apple according to the NY Times
• Bold statement and a lot has been made of this in relation to Swatch. There is no doubt it will have an effect if they get it right. Apple has a massive following and a great track record at getting things right
• Until recently Swatch have been in denial stating that the iwatch will have no effect on sales
• Swatch have finally reacted with talk of a fitness function. Too little too late in an area they have spent no money and have limited if any expertise
• Apple has employed world class big names to work on the iWatch:

-Marc Newson Designer

-Burberry chief executive Angela Ahrendts

-Yves Saint Laurent’s Paul Deneve

-Nike’s Ben Shaffer

• So far Swatch has de rated more on poor earnings momentum. This is more on China sales and inventory issues which are set to continue.
• Now is the time of the iWatch
• Trading Short into tonight’s Apple event