Tag Heuer CEO: Apple’s Luxury Watch Will Become Obsolete

The president of LVMH’s watch division and CEO of Tag Heuer, Jean-Claude Biver, continues to do interviews leading up to unveiling of the companies $1,800 Android Wear-powered smartwatch. In an interview with CNBC, Biver both praised and warned Apple about its Watch business.

How successful has Apple been? We don’t know. In the beginning, they were speaking about 10 to 20 million pieces, then sometimes we say they only sold 5 million. Nevertheless, to sell 5 million watches when you have not been a watchmaker is genius. It’s phenomenal.

Yes, to sell 5 million Apple Watches is pretty phenomenal, but it’s certainly possible that the company will 10-20 million in its first year. Compare that to the likely 1-2 million Android Wear watches sold in well over a year and it’s fair to say that Apple may be onto something.

Biver also believes that Apple made a mistake with the Edition, which ranges from $10,000 – $17,000.

Above $2,000, the connected watch has a huge problem. There is no eternity, it means it will become obsolete and who wants to buy a $10,000 – $20,000 watch, that becomes obsolete after five or 10 years?

Biver has a point and he certainly understands the luxury market so his comments should be taken with some level of seriousness. My only concern is that if the connected Watch is the beginning of a new era of watches, aren’t some people going to want really nice, expensive, solid gold one? Don’t some people spend a lot of money on expensive cars, bags, shoes, all which can also become “obsolete” in their own ways?

Call me crazy, but I think a $1,800 Android Wear watch has a great chance of becoming obsolete than a $17,000 gold Apple Watch does.