Tag Heuer’s CEO, Jean-Claude Biver, took to CNBC this week to provide an update on the company’s smartwatch effort. After previously dismissing and bashing the wearable devices, Tag Heuer announced late last year that it would develop it’s own connected watch and that it would be different from anything on the market. During his discussion with CNBC, Biver announced that the device would finally be unveiled November 9th in NYC. Based on the Carrera watch design, it was previously communicated that the smartwatch would list for $1,400. Rarely do we see a company announce a nearly 30% price increase a month before the product’s launch, but that is just what Tag Heuer did. The company’s wearable will now start at $1,800, a $400 increase. Biver says he is comfortable with the pricing because since it is only a few hundred more than the [highest-end] Apple Watch Hermés.
From our perspective, there seems to be more curiosity than genuine interest in Tag Heuer’s smartwatch and $1,800 is a huge price tag from a company with no electronics experience. But it will be interesting to see what the Swiss watchmaker has been able to cook up and if it will be compelling enough to attract high-end consumers. Tag Heuer has been working with Google and Intel on the project so we will be curious to see if the device is unique or just another packaging of off-the-shelf Android Wear. Smartly, Biver has enough sense to concede that it would be “ridiculous” for Tag Heuer to chase the Apple Watch.
