The people that are buying Apple watches and only Apple watches are the people who were already using their smartphone as a clock. They were never going to buy traditional watches, period.
The smartwatch and the traditional watch markets are separate. I know of no traditional watch owners that would replace their "real" watches with an Apple watch. They might buy one as well, to see what the fuss is about, but never as a replacement.
Apple will sell plenty. They are overpriced peripherals for their overpriced smartphones. A new model comes out every year and just like anything that uses a microprocessor, will be obsolete and worth absolutely nothing in just a couple of years' time.
TH should not worry about smartwatch market. It is a low margin, high volume fashion-driven business, similar to the mainstream quartz watch market. Except that it's even harder to differentiate in smartwatches!
Everything that is not Apple uses Wear OS. And no watch firm could ever develop its own OS and app eco-system, and successfully gain any market share. It would waste untold millions (billions even) trying to.
It's telling that the Connected range was a modular system that ended up including a mechanical piece as a trade in for old digital ones. I wouldn't be surprised to see TAG drop the Connected range completely.
Comparing traditional watches to smartwatches is like comparing vinyl to digital downloads. Different products, serving different tastes, needs and budgets. Sometimes with the same buyers, but often not.
