Swatch is looking to launch its own smartwatch into the wearable devices market within the next two to three months, with the aim of going head-to-head with the much-anticipated Apple Watch.
The company's plan was revealed by Swatch CEO Nick Hayek in an interview with Bloomberg.
The Swatch smartwatch will be communicating with smartphones through NFC technology and will not require any form of charging, Hayek said, adding that the device will allow consumers to use mobile payment systems and will be compatible with both Android and Windows software.
The value of the smartwatch market is estimated to possibly reach $10 billion by 2018, according to the forecast of analysts from Citigroup. Half of the burgeoning market is expected to come from traditional watch users who will be making the switch to wearable devices.
Swatch has accumulated significant experience in the development of technology that may be included in smartwatches, such as long-life, thin batteries that are bendable. The Tissot brand of Swatch has been making touchscreen watches since 1999, with some models featuring a compass, an altimeter, and sensors that record the depth of the descent of a diver.
The new direction of Swatch represents a dramatic turnaround from Hayek's initial skepticism of the potential of the smartwatch. Two years ago, he said that he didn't think of the device as a "revolution" in the watch industry, adding that he was concerned about the screens in smartwatches being too small and the required amounts of re-charging for such devices.
"Entrepreneurs are practical people, and they care more about being successful than being consistent," said Exane BNP analyst Luca Scola, referring to Hayek's sudden change of interest in the smartwatch industry. He added that with Swatch already having access to technology that would benefit smartwatches, it would be better for the company to be involved in the business than to decide to leave itself out of it.
A Swatch spokesman confirmed Hayek's newly revealed information in a statement to CNET, but added that there is still no other information that is available for the device. The spokesman also said that the mobile payment systems in the Swatch smartwatch will be compatible with stores such as Migros and Coop, both of which are Swiss retailers. This may mean that the Swatch smartwatch will only be available initially in Switzerland.
The Apple Watch, which the Swatch smartwatch is looking to compete with, will be launched in April, according to Apple CEO Tim Cook.
