Smartwatches are taking over our wrists, and it's likely to get worse for traditional Swiss watchmakers, according to UBS.
The Apple Watch is bigger than every Swiss watch brand except Rolex, analysts at the bank said in a note on Monday. And Swatch is most vulnerable in this environment, according to Helen Brand and her colleagues.
Swiss watchmakers recognize the demand for wearables, but are reluctant to dive in because they would need to rely on the tech companies that make the microprocessors that replace the mechanical parts, UBS said.
Also, the high-end companies could hurt their status when they sell wearables cheaper than they would traditional timepieces. That puts Swatch at the most risk because it leans more heavily towards entry-level products than its peers, Brand said.