The world's largest watchmaker disclosed its riposte to Apple Inc's smartwatch on Thursday, announcing a plan to put cheap programmable chips in watches that will let wearers from China to Chicago make payments with a swipe of the wrist.
Swatch Group will start offering watches with near field communication (NFC) chips within two months, CEO Nick Hayek said at a news conference on the company's annual results which were released last month.
Apple's turn into watches would open up a market where Swatch was already decently positioned to contend, he said.
The Swiss company's strategy appears to rotate around including individual tech features in distinctive models rather than going head to head with Apple, the world's most valuable firm, to create all-in-one smartwatches combining many functions.
"We are the title holders of integrating smart functions into a watch," Hayek said. "We don't want to create a mini cell phone on your wrist. Others can do that."
At 1600 GMT, Swatch shares were up 2.7 percent at 432.1 Swiss francs.
Apple's watch will go on sale in nine countries starting in April, priced from $349 for the smaller model and $549 for the standard version, although a high-end "Edition" watch will sell for at least $10,000.
"It's a fantastic open door for us. It is opening the market. Especially in the U.S., many individuals are not wearing watches any more. Somebody is opening this up. Let Apple do the work. It's fine. It's good. I congratulate them."
Both firms' strategies could coincide and succeed, Hayek said, before adding a burrow at the greater rival: "Upgrading software consistently, that's not our business."
For its near-field chips, which will cost around 2 francs ($2) every watch, Swatch has teamed up with China UnionPay, the Chinese Visa association, as well as a Swiss bank and a major charge card company.
The Mastercard company, described as an Olympics sponsor, is liable to be Visa, a long-time backer of the occasion. Visa was not immediately available to remark.
Swatch is also launching a range of sports-themed "Swatch Touch" smartwatches which will have the capacity to "pal up" with a smartphone via a Bluetooth connection.
The first model will retail at 135 francs, about double the cost of a regular Swatch watch with a NFC chip.
Swatch Group will start offering watches with near field communication (NFC) chips within two months, CEO Nick Hayek said at a news conference on the company's annual results which were released last month.
Apple's turn into watches would open up a market where Swatch was already decently positioned to contend, he said.
The Swiss company's strategy appears to rotate around including individual tech features in distinctive models rather than going head to head with Apple, the world's most valuable firm, to create all-in-one smartwatches combining many functions.
"We are the title holders of integrating smart functions into a watch," Hayek said. "We don't want to create a mini cell phone on your wrist. Others can do that."
At 1600 GMT, Swatch shares were up 2.7 percent at 432.1 Swiss francs.
Apple's watch will go on sale in nine countries starting in April, priced from $349 for the smaller model and $549 for the standard version, although a high-end "Edition" watch will sell for at least $10,000.
"It's a fantastic open door for us. It is opening the market. Especially in the U.S., many individuals are not wearing watches any more. Somebody is opening this up. Let Apple do the work. It's fine. It's good. I congratulate them."
Both firms' strategies could coincide and succeed, Hayek said, before adding a burrow at the greater rival: "Upgrading software consistently, that's not our business."
For its near-field chips, which will cost around 2 francs ($2) every watch, Swatch has teamed up with China UnionPay, the Chinese Visa association, as well as a Swiss bank and a major charge card company.
The Mastercard company, described as an Olympics sponsor, is liable to be Visa, a long-time backer of the occasion. Visa was not immediately available to remark.
Swatch is also launching a range of sports-themed "Swatch Touch" smartwatches which will have the capacity to "pal up" with a smartphone via a Bluetooth connection.
The first model will retail at 135 francs, about double the cost of a regular Swatch watch with a NFC chip.
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| Chinese Swatch goes for cheaper and quicker as smartwatch war proceed |
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