TAG Heuer watch sales to rise at least 10 percent this year

TAG Heuer watch sales to rise at least 10 percent this year - paper
ZURICH (Reuters) - The head of luxury group LVMH's (LVMH.PA) Swiss watchmaking business expects sales of the TAG Heuer brand, which includes "smartwatches" that connect to the Internet, to rise by at least a tenth this year, he told Swiss newspaper Le Temps.

"TAG Heuer exceeds all our expectations. At the end of April, watch sales are up 20 percent. I hope for a minimum of 10 percent at the end of the year," Jean-Claude Biver said in an interview published on Saturday.

Of the company's two other watch brands, he said Hublot was undergoing "voluntary braking" in a year of consolidation, while Zenith was suffering like other watch brands from weak Chinese demand.

Biver played down news that chipmaker Intel (INTC.O) would halt production of Atom processors used in TAG Heuer "Connected" smartwatches. Asked if he was worried, he said:

"Absolutely not. It is rather good news. It must be understood that Intel is not only a supplier but also a partner for TAG Heuer. We are together already thinking about new parts that will equip the Carrera Connected of tomorrow."

TAG Heuer head Guy Semon spent 10 days a month at Intel, he said, adding that TAG Heuer would open an office in Silicon Valley this summer. "Not being there would for us be like claiming to do fashion and not be in Milan or Paris."

TAG Heuer last year became the first Swiss watchmaker to offer a smartwatch to customers that combines Swiss design with U.S. technology, seeking to tap a growing market for wearable devices amid flagging sales of traditional watches.

https://finance.yahoo.com/news/tag-heuer-watch-sales-rise-122753285.html

The demand for the Connected continues to surprise. One if my local dealers told me this week that people keep coming in to 'see' the Connected, but since they don't stock it, they can't sell it. I wonder how much of its scarcity & 'unavailability' beyond TH Boutiques plays into the consumer's interest.

The Intel discontinuation on the Atom processors will play a big part on how next generations are architected. I for one, hope to see a more standardized chipset with the latest capabilities built in and hopefully an increase of 3rd party APP development / compatibility.

Finally, if the Connected is to retain its competitiveness & desirability, TH must strive for internal hardware refreshes at least every year, in order to keep up with the technology trends and latest offerings of the other Smart Watch brands.

Agreed, I'm supprised there was nothing new on connected as Basel.