iWatch Rumors Not Good For Swatch's Business, Analysts Claim

The impending threat of an Apple smartwatch may have contributed to poor first half numbers for Swatch,Reuters reports.

With rumors picking up in frequency that an "iWatch" could release sometime later this year, the Swatch Group could be particularly vulnerable due to its touchscreen-packing line of entry-level and fashionable brands, Swatch and Tissot, according to the publication:

"'Swatch is likely to suffer ... from potential multiple compression should Apple launch a particularly compelling smart watch product,' Exane BNP Paribas analyst Luca Solca said in a recent study.

Analyst Mario Ortelli at brokerage Bernstein said in a study last week he estimated about 23 percent of Swatch Group's sales and about 11 percent of its earnings before interest and taxes (EBIT) could be put at risk by an iWatch. Revenue and EBIT could drop about 3 percent over the medium term, he said.

The threat is wider than just from Apple and JP Morgan analysts said in a recent study that smartwatches in general could threaten about 30 percent of Swatch's sales, which amounted to 8.82 billion Swiss francs ($9.8 billion) last year."

A recent survey from investment firm Piper Jaffray, however, does not suggest consumers are seeing the appeal of smartwatches at this time.

When asked the question, "Would you buy an Apple iWatch if it cost you $350?," just 14 percent of survey-takers indicated they would pick up the device, CNET reports.

Piper Jaffray's survey of 100 people, which targeted North American adults with an average age of 32 and a household income of $130,000, was about on-par with previous poll results from the firm - 12 percent in October and 17 percent (with teens) this past spring.

The figures certainly aren't a great indication that consumers have changed their minds on smartwatches. One way Apple hopes to do make the device more appealing, however, is with health and fitness-based features.

Among those polled by Piper Jaffray, 18 percent indicated they already own a fitness band (half of which were FitBit products). Fifty-six percent of those who own the band said that they wear it every day. Meanwhile, 18 percent of those who did not own a fitness band indicated they plan on buying one over the next year.