Transcript
So I wanna talk about a rumor that is sending shock waves through the watchmaking world. Yesterday, I was with a buddy and I walked past tier Swatch store. And he's like, dude, did you hear that Swatch is doing a collab with AP? And I'm like, j z AP? $4,050,000 dollar Royal Oak AP? They're gonna do a collab with Toy Swatch Company that sells $200 watches? And he's like, yes, dude. They are. And I'm like, alright. I gotta investigate what's going on here. So I head over to the Swatch Instagram, and they have a series of posts basically saying, hey. May 16, something's gonna be coming here. A lot of people in the watch world are like, dude, they're doing a Royal Oak collab, which has the AP Watch guys shaking in their better. Because if you own a $50,000 watch, the last thing you want is a $200 version of that watch to exist. So then I'm like, okay, why are they doing this? So I'm googling. I'm digging. And I find a few years ago that they did a collab with Omega. Omega has the iconic Speedmaster, costs anywhere from 5 to $10,000 no more of an accessible watch in this luxury tier. In 2022, they partnered with Swatch to make the Moon Swatch, which was a $300 watch. And, apparently, they rode this all the way to the moon. And what it did for both rank, worst, is that it boosted the sales of the Omega Speedmaster. And then the first year they sold a million moon swatches. So like $250,000,000 in revenue just from this one watch. But then you find out, hey, Omega and Swatch are owned by the same parent company. So daddy's getting paid either way. It doesn't matter where it's coming from. It's not like one is necessarily gonna cannibalize the other. So that leads us to today with Automars. You'll notice that Automars is nowhere to be found here because they are not owned by Swatch Group. So what do they have to gain? Let's take a look with some very proprietary data that I have collated. Rolex is riding high, and Omega has basically been just like a step above Audemars for a bit. No Audemars probably saw this, and they're like, hey, dude. We could actually overtake Omega, and we could go ride the coattails of Rolex potentially by doing this collab. Also, the new CEO of Audemars said, I don't really like this concept of being exclusive. I wanna, like, break down our lofty reputation and kind of, like, navel gazing. So between, like, this ethos, these numbers, the fact that this product is, like, $50.60, $70,000, Audemars is thinking, like, hey. We gotta think about our next generation of buyer here. So if we have a similar collab like this, can we just drive a lot more sales and interest and demand for AP in the Royal Oak? So the rumors are more or less confirmed, and we are gonna see. Is this good, or is this horrible? Thank you.