TAG Heuer Smartwatch News: Won't Be Swiss Made As Company CEO Hails Apple Watch

Virginia D'Cruz Thursday, January 22, 2015

The Tag Heuer logo is shown at a new watch factory in Chevenez, Switzerland. | REUTERS/Ruben Sprich

With the Apple Watch launching within a few months, luxury watchmakers such as TAG Heuer have started to take it seriously as a competitor.

When the Apple Watch was announced last year, it quickly drew skepticism from TAG Heuer. The company's CEO Jean-Claude Biver called Apple Watch as devoid of "any sex appeal" and looks like a rip-off of the many other smartwatches on the market.

Later, he said TAG Heuer would be creating its own smartwatch but did not go into details.

But in a recent interview with Bloomberg, Biver changed his tune about the Apple Watch and described it as "the biggest threat to traditional watches in the sub-$2,000 category in which TAG Heuer competes."

He then elaborated on TAG Heuer's plans for its own smartwatch, saying it would not have the "Swiss Made" mark. If this is the case, it could mean that TAG Heuer is planning to source more than 50 percent of its components from other countries which would therefore not allow the watch to carry the "Swiss Made" mark.

Biver also said TAG Heuer plans to reveal the partnerships it has forged to create the watch within the next six weeks.

The "Swiss Made" mark has long been associated with luxury timepieces. It is a major marketing weapon as Switzerland is a leader in mechanical watch design. However, it is clear from Biver's statement that the company will be turning to Silicon Valley for the smartwatch's software and components.

Biver explained his company's position by saying: "We can't produce the engine, the chips, the applications, the hardware in Switzerland, so it will come from Silicon Valley. But when it comes to the idea of the watch, its case, dial, design and crown they will be Swiss."

A year after denigrating the upcoming Apple device, Biver completely changed his view, describing the Apple Watch as a "a fantastic product, and incredible achievement." He even said that he planned to wear it as "the Apple Watch connects me to the future, while my watch connects me to history, to eternity."