It's interesting. The results are bad but a few things don't really square up for me:

- Sure the CHF is strong, and gold prices are high,

- Nonetheless, it certainly feels like watch price inflation has outstripped general inflation to an unreasonable extent,

- Over the past few months there seems to have been an explosion of YouTube channels dealing with watches and horology (Federico talks watches, https://www.youtube.com/channel/UCH27JDu8g6tPDIjDikVGPog, and the now sadly withdrawn Paul Thorpe Watch Dealer, to name but two), with healthy subscriber growth,

- Continuing popularlity of watch forums, blogs, etc.

The YouTube channel comment may just be my own perception since my own interest in watches really only started in early 2014 (I'd always liked them but avoided getting into them instinctively on the grounds that as expensive hobbies go, this one seems potentially ruinous).

I do wonder if Swiss manufacturers haven't crapped in their own nest somewhat by over-inflating prices during the period of popularity over the last few years. Sure there are factors beyond their control but, for example, any stainless steel Rolex you're likely to want will set you back at least £6k. I realise the weak pound exacerbates matters, but it still feels like they're taking the mick.

And I can sort of see the perspective on smart watches being no threat: the availability of Apple or Android Smartwatches is going to have no effect on my decision to buy a Rolex, Omega, Ulysse Nardin, AP, or whatever.

Part of me also somewhat objects to spending £500 on something else with a 2 year (ish) useful life (think laptop, tablet, phone, on top of this), whereas a £500 mechanical watch from Hamilton or Seiko will last a lifetime if properly serviced and taken care of.

One of the big reasons I started wearing a watch again, apart from I think they're cool (especially mechanical watches), is so I'd stop pulling out my phone to check the time, inevitably leading to me seeing a notification, and then 10 minutes of my life has disappeared screwing around with twitter/facebook/email/whatever... all because I wanted to know what time it was. From that point of view the Apple Watch, much as I think it is quite cool, would be completely counterproductive. Absolutely the last thing I need in my life is yet more distractions.

But not everyone thinks like that, so maybe smartwatches are a threat to the high end manufacturers.

One thing nobody's mentioned so far: servicing. People talk about how a good mechanical watch will last a lifetime, or even outlast you, and this is true, that can happen. But the keyword here is mechanical. This means wear and tear on the mechanism, and that means that, just like your car, you have to get it serviced and lubricated to keep it running well. Often this is every 3 - 5 years, and for a luxury watch will cost as much as a significant piece of maintenance or repair on your car: i.e., £500+.

It might also take 3 months.

This sucks, and does perhaps cast that £500 every 2 - 3 years for an Apple Watch in a slightly different light.

In fairness to the Swiss manufacturers, some of them are making efforts in this area. Some are improving their customer service (I believe Omega are supposed to be strong here), and Breitling have recently released their own in-house B01 movement which I've heard may only need to be serviced every 10 years (at what cost I don't know). Similarly I believe the Omega co-axial movements also have longer service intervals. Nevertheless Swiss watchmaking is an old skool - somewhat elitist - industry overall and their idea of acceptable customer service does lag the curve.