TAG Heuer Connected (Photo : Twitter)
TAG Heuer Connected's production will nearly be doubled due to the high demand for the Android Wear luxury smartwatch. The Swiss watchmaker's first wearable device is a high-tech version of its classic Carrera timepiece, and is powered with an Intel processor and Google's operating system. In order to meet retailers' and resellers' demand of 100,000 units, the company will boost its weekly output by 800 units, which is 40 percent higher than current figures.
TAG Heuer CEO Jean-Claude Biver told Bloomberg that the company hopes to increase its weekly productivity from 1,200 units per week, to 2,000 units. In order to catch up with orders from brick-and-mortar retail stores it will stop online sales until May or June of 2016, according to Bloomberg.
At first many experts questioned if there would be a high demand for a luxury Android smart watch, according to 9To5Google. However, it is filling a niche. The 18-karat gold Apple Watch Edition starts at $10,000, while the TAG Heuer Carrera Connected has a starting price of $1,500.
Biver explained that the luxury Android Wear smartwatch was launched as a type of experiment to test the market's response. It now plans to roll out follow-up models from the end of 2016 to the beginning of 2017, which might include gold and diamond sets.
Many wearable fans value function over form. Therefore, they are not likely to shell out $1,500 for a luxury smartwatch.
However, other shoppers care more about a wristwatch's design than its tech, but are not willing to spend up to $17,000 for an Apple Watch. They are the Connected smartwatch's target market.
An X-factor is TAG Heuer's brand recognition. The Swiss company has been producing high-quality wristwatches since 1860.
In an interview with Bloomberg in January of this year, Biver argued that the Apple Watch was the largest threat to timepieces with price tags less than $2,000. He also explained that "Swiss made" is not just a label that TAG Heuer uses, but instead is a state of mind. Thus, the Connected smartwatch was born.
Here's a hands-on for TAG Heuer Connected:
