New Apple Watch Causes Swatch Stocks To Fall, $1 Billion In Losses

During the recent Apple event, the company unveiled its latest gadgets and goodies, and the newest version of the Apple Smartwatch made an appearance. It was apparently received so well that its success resulted in a huge bruising of another company’s stocks. Once the watch was announced, Swatch saw a 4.5 percent drop on Tuesday, which was worth nearly $1 billion.

Like Rolex and other popular watch brands, Swatch has been trying to make its mark on the smartwatch market with its own offering. This has contributed to the recent marked uptick in its share prices. However, when Apple revealed its latest wearable device that is independent of smartphones, investors quickly realized which firm would be at the top in the next few months and years, Business Insider reports.

Just for some context, aside from the fact that the new Apple Watch comes with some truly spectacular improvements in terms of its specifications, it also has new capabilities that are set to change the game. No longer needing to be connected to an iPhone means that users can wear it without having to bring a bulky device with them.

The watch can now receive calls, connect to the internet, and receive messages all on its own. This is something that no other notable smartwatch maker has been able to offer. In addition, Apple is an incredibly huge tech company with advanced technologies that make whatever traditional luxury watch makers create look like toys by comparison.

As contributors have told Bloomberg, smartwatches have earned their staying power, with Apple being one of the leaders in the field. If traditional watch makers truly want to make their mark in this territory, they have their work cut out for them. Even fellow smart wearable maker Fitbit felt the punch of the new Apple Watch, which is losing ground in the market.