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How Rolex became the king of watches

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Rolex

Play a simple word association game with anyone — say "watches" and the reply you get will most likely be "Rolex."

The Rolex brand is so ingrained in the minds of much of the world, it's hard to believe watches even existed before Austrian national Hans Wilsdorf started the company in the early 1900s.

It now stands as the most powerful watchmaker in the world, consistently ranking at the top of lists of the globe's most reputable companies.

Rolex does not actually release sales numbers, but experts estimate that it makes roughly 1 million watches a year, presumably more than any other luxury watchmaker.

How did Rolex become this indisputable master of horology? According to Ben Clymer, the founder and executive editor of premiere watch enthusiast site Hodinkee, Rolex has built its brand on the back of incredible innovation, a name for rock-solid quality, and one of the most notable celebrity endorsements of the 20th century.

Basically: "Rolex is Rolex for a reason," Clymer told us.

Innovation after innovation

Rolex

Rolex's status is no accident.

"Actual innovation in the watchmaking field is what propels Rolex to where they are now," Clymer said.

To cement its status, Rolex invented: the first waterproof case, the first self-winding watch, the first watch with a date, and (arguably) one of the first driving chronographs.

Before watches became the luxury item they are known as today, they were tools, Clymer says. These innovations have made these watches much more usable.

A self-winding mechanism enables the wearer to avoid having to wind the watch every night, a waterproof case allows a diver to take the watch down with them and time their dives, and a driving chronograph allows race car drivers to time their laps with precision.

These innovations also make it easier to wear the watch every day. "You wouldn't be able to wash your hands with a watch [without a waterproof case]," Clymer said. 

A reputation for quality

Rolex

On top of these innovations in watchmaking in the first half of the 1900s, Rolex developed a reputation for reliability.

In order for all of these innovations to function, and for the watches to operate as the tools they were intended to be, the watches had to be the best. It's important to remember that these were not simply luxury items as they are viewed today, Clymer says.

"If you were a navy diver and you wanted something that would simply last forever and was a tool, and would survive going to 100 meters, [you bought a Rolex]," Clymer said. "Because it just works."

Swimmer tested, swimmer approved

Mercedes Gleitze

 Innovation and quality is great — but it does you no good unless potential customers are aware of it.

In 1927, Wilsdorf approached Mercedes Gleitze, the first woman to swim the English Channel (and the first person to swim the Strait of Gibraltar), and asked her to wear the new Rolex Oyster watch, complete with waterproof case.

The swimmer agreed and wore it around her neck during an attempt to swim the channel.

"This woman, who was then being photographed on the front page of the newspaper every day, was wearing a Rolex around her neck," Clymer said.

Though she didn't actually complete the swim on that attempt, Gleitze's celebrity status catapulted Rolex's name into the public consciousness, and Rolex was able to talk up the fact that the watch kept time even after being submerged in cold water for hours. This greatly increased brand awareness and the public's opinion of Rolex's quality.

Rolex has since used images of women swimming while wearing their watches in its advertising, even as recently as 2010.

SEE ALSO: The best watches you can buy on any budget

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Why luxury watches cost so much money

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Rolex

High-end mechanical watches are expensive. But the reason why goes beyond the fact that they're just highly complicated mechanisms in a small enclosure.

In the earlier part of the 20th century, watches were used primarily as tools, says Ben Clymer, founder and executive editor of watch expert site Hodinkee.

For example: A diver needed something that was waterproof and would work at depths of up to 100 meters, a race car driver needed a method to time laps, and a surgeon would need something to reliably measure operating time.

All that changed with the start of the "quartz crisis" (or the "quartz revolution", depending on who you ask).

Quartz watches use an electronic motor powered by electric current going through quartz crystal to keep time, as opposed to a balance wheel or pendulum. This requires fewer parts, is much cheaper to produce, and is, by its nature, more precise than a mechanical watch.

When quartz watches became cheap enough to be mass-produced, this presented a problem for the primary watchmakers of the time, largely Swiss companies who resisted the move to quartz that had primarily been spearheaded by Japan and Hong Kong. From 1973 to 1983, Swiss watch imports plummeted from 40 million to 10 million, according to a 1999 article in "The Freeman", a magazine published by the Foundation for Economic Education. 

Some Swiss companies died (from 1970 to 1980, the number of Swiss watchmaking companies fell from 1,618 to 861, shedding more than 46,000 workers, according to a 2014 presentation by the IFMA). Others pivoted into the new quartz trend by merging and creating Swatch (now the largest watch group in the world), battling the new threat from cheaper quartz watches made out of plastic.

Still others, like Rolex and Patek Philippe, were chased up-market — which is how they became the luxury brands we know them as today.

"At that point, people didn't need a mechanical watch anymore," Clymer said. "They just wanted them."

For example, Rolex in particular started making their watches in gold, and emphasized their quality in the marketing materials. The watches became symbols of prestige.

"In the '70s is when the [Rolex] Day-Date ... really took off as a status symbol," Clymer said.

Quartz has since become the world's primary time-keeping technology, and mechanical watches have been relegated to the realm of luxury. 

"It is a luxury object in the sense that none of us need them," Clymer said. But according to him, that's just part of the allure — along with its durability and technical prowess.

SEE ALSO: How Rolex became the king of watches

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This is the most impressive thing about Rolex, according to one of the only journalists allowed to tour their secretive factory

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Rolex

Rolex is a notoriously secretive company. In defense of its trade secrets, how dominant it is in the luxury watch field, and how much it has to lose, it doesn't offer factory tours, and its workshops are locked behind iris-scanning security technology and thick steel doors.

But Ben Clymer, the founder and executive editor of watch enthusiast website Hodinkee, was given that rare glimpse inside, and saw how Rolex actually makes its watches.

And what he found amazed him.

"I was under the impression that it was all machine-assembled," Clymer told Business Insider, noting that Rolex has its own gold foundry, a full chemistry lab, and testing facilities that "rival NASA."

"But more impressive than that was the amount of human interaction there was. There were actual people doing the assembly," Clymer said, adding that this was the most impressive thing he saw during his tour.

"The scale of everything, the detail, the people and perfection, I have to imagine, is unique in watchmaking, if not all consumer products," Clymer wrote in his post on Hodinkee, noting that there really were "people everywhere" in Rolex's various workshops.

"A lot of the higher-end brands like to scoff at Rolex and say there's no human touch to the watch, no humans actually touch it before it ships," Clymer said. "But that's completely not true."

That human touch is what makes luxury watches like a Rolex worth their high price points, Clymer said.

Why does Rolex need all these people? Well, the company does something no one else does: it makes every component of its watches themselves, from the metal alloys to the most minute spring.

"You don't need to do that," Clymer told us. "Other brands don't do that and nobody cares."

"The fact [is] that Rolex goes so above and beyond."

SEE ALSO: Why luxury watches cost so much money

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Some watch aficionados are willing to wait 2 years to get this $12,000 Rolex

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rolex daytona 2016

It's no secret that Rolex watches are in high demand.

When Rolex announced a big update to one of its flagship watches, the Daytona, fans rushed in droves to order the new model. The announcement was made at Baselworld, the watch industry's biggest trade show. 

Unfortunately, Daytonas are not like the new iPhone. They're rare beasts made by an extremely secretive company, and that's not going to change anytime soon.

"From the moment it was announced, demand was unlike anything we've ever seen," Ira Melnitsky, CEO of watch retailer Tourneau, told The New York Times.

Wait times for Daytonas are not unheard of. The watch is produced in low numbers, and distribution is carefully planned out by the company.

However, now those times have stretched out longer and longer due to the allure of the updated model. 

"I've heard several times of two-year waiting lists," Louis Westphalen, manager of vintage watch sales at Hodinkee, told The Times.

The kicker: fans don't even know when the watch is going to be released, though many suspect it will be this summer. It will retail for just over $12,000.

Why are watch fans clamoring for the new Daytona?

rolex daytona

In reality, the differences are pretty small compared to other recent versions. However, the last time the watch had a significant update was way back in 2000, and any change to a Rolex watch is a huge deal among aficionados.

The biggest difference for the new version is the black ceramic bezel (the circle around the watch face). It hearkens back to 1965, when the first Daytona was released with a black plexiglass insert.

SEE ALSO: How Rolex became the king of watches

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A man who bought a Rolex Daytona for $543 in 1973 found out it's now worth at least $100,000

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These are the stories you love to hear. Unsuspecting man – a pilot – because of course he's a pilot – needs a watch for navigation purposes in the early 1970s. So he stops into his local watch shop, picks up a watch. Maybe that gold one, with the weird dial that nobody seems to want? Sure. He pays $543.38 for it, wears it for a few years, then puts it away. Decades pass. He hears that Antiques Roadshow is coming to town, and think his little gold Rolex might be worth $500, or maybe a little more. Yeah, he was right.

daytona hodinkee

When he met the appraiser on Antiques Roadshow, he was told the Daytona, which – oh, by the way happens to be a solid-gold Paul Newman Daytona; and oh, by the way it has the original box, papers, receipts, strap, and buckle – could easily be worth $100,000 and that it was a reference 6263. It's not a 6263, but the watch certainly could easily be worth $100,000, and in fact, quite a bit more. You can watch the full clip here.

daytona hodinkee 2

Well, after finding out the watch could be worth into six figures, the owner proceeded to sell the timepiece to a broker, who then passed the watch along to the boys over at the Keystone, in California, over six months ago! And now that the episode of Antiques Roadshow where this gold Paul Newman is featured has aired, they've decided to finally list the watch for sale. Price is, naturally, on application, but considering the quality, provenance, and original nature of the watch, we're confident in saying it is worth north of $350,000.

daytona hodinkee 3

Check it out right here, and feel free to kick yourself (and your parents, and your grandparents) for not buying one of these Daytonas back then.

DID YOU KNOW? The retail price of a 14k yellow-gold Daytona (reference 6265) in 1975 (two years after this watch was purchased, but as close as we have firm documentation for) was in fact $1,950. And this man paid $543. So if you assume retail for this watch was fractionally less than $1,950 because it is a pump pusher (non-Oyster) and sold without gold bracelet, you can assume retail was around $1,200 or so. You've heard about PN's selling at discount – here's proof. If anyone has firm pricing on a gold 6241 in 1973, we'd love to know about it.

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This 58-year-old Rolex just broke a huge auction record again

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Rolex GMT

This year's watch auction season is just beginning, but already timepieces are breaking records left and right.

At a recent auction by Phillips in Geneva, yet another record was set. 

A particularly beautiful example of a 1958 Rolex GMT Master sold for a record-breaking $347,000 during the auction, which took place over the weekend. The watch, reference 6542, has a striking "Bakelite" cognac-brown bezel and is made in 18-karat gold.

This is the highest price ever paid for a Rolex GMT Master, according to Hodinkee, and is much higher than the estimated $180,000 to $290,000 Phillips expected the piece to fetch.

According to the auction house, this watch is especially noteworthy because it is the best preserved version of the watch in gold, and it's an example of "breathtaking condition and beauty." Gold GMT Master watches are rare, as Rolex more commonly makes them in stainless steel.

The original Bakelite bezel is also highly sought-after, especially one that is in perfect condition like on this watch. The timepiece is completely unrestored and original.

This isn't the first time this particular watch has earned the honor of being the most expensive Master GMT ever sold at an auction. When it was last up for sale seven years ago, a bidding war erupted, and the previous record was set. 

The loser of that war won the watch this time, and, according to Hodinkee, he "left very happy."

All told, $33 million in watches sold at multiple auctions in Geneva over the weekend.

Due to an error, the watch's selling price was misstated. It sold for $347,000.

SEE ALSO: How Rolex became the king of watches

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The $14,000 Android "Rolls Royce of smartphones" just launched

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Solarin Duo

Stealth Israeli startup Sirin Labs officially launched its super high-end Android smartphone at an event in London today, bringing to an end years of speculation about what the company’s been cooking up behind the scenes.

Sirin Labs was founded in 2013 by Kazakh entrepreneur Kenges Rakishev, Israeli venture capitalist Moshe Hogeg (the same guy behind Yo and Mobli), and former McKinsey consultant Tal Cohen. The mission? To create the Rolls-Royce of smartphones — an advanced device that combined “the highest privacy settings, operated faster than any other phone, [and was] built with the best materials from around the world.” The company had raised a $25 million “seed” round a couple of years back, followed by a chunky $72 million round just last month.

Solarin promises “the most advanced privacy technology, currently unavailable outside the agency world,” and has partnered with Koolspan to integrate chip-to-chip 256-bit AES encryption, similar to what the military uses to protect communications. It’s activated via a physical security switch on the back of the phone.

“‘Cyberattacks are endemic across the globe,” said Tal Cohen, CEO and cofounder of Sirin Labs. “This trend is on the increase. Just one attack can severely harm reputations and finances. Solarin is pioneering new, uncompromising privacy measures to provide customers with greater confidence and the reassurance necessary to handle business-critical information.

Solarin also sports a Qualcomm Snapdragon 810 processor, comes with support for 24 bands of LTE, and promises “far superior” Wi-Fi connectivity than standard mobile phones. It also has a 23.8-megapixel rear camera and a 5.5” IPS LED 2K resolution screen.

“Every single design decision and material choice was based on performance and functionality,” said Fredrik Öijer, VP of product at Sirin Labs. “The product you hold today unites the very best of the world stage.”

It’s worth noting here that this isn’t a mass-market device — at $13,800 this is for the super-rich. But if that’s you, then it goes on sale online globally, at Sirin Labs’ first retail store in Mayfair (34 Bruton Place), London from June 1; and at Harrods, Knightsbridge from June 30.

London is the “natural home of the Sirin Labs’ customer,” as the company previously put it. But plans are afoot to open additional retail stores across Europe, North America, and Asia later in the year.

Ludicrously expensive phones aren’t entirely without precedent — Nokia dumped luxury-phone brand Vertu back in 2012, but only after it had brought to market a number of eye-poppingly expensive handsets, such as the $310,000 Signature Cobra and the $5,000 Constellation. After leaving Nokia, Vertu brought out its first Android device — the $10,000 Vertu Ti — and was eventually acquired from Swedish private equity group EQT by a consortium of Chinese investors back in November.

We’ll also be trying to get a hands-on with the Solarin phone and update with more photos.

SEE ALSO: European startup Sirin just raised $72 million to build the 'Rolls Royce of smartphones'







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This $250 Seiko proves that you don't need to spend a ton on a great dive watch

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Seiko Diver

I don't dive, but I like dive watches. 

I like them because they're aren't fussy — good ones are well made, can be gotten plenty wet, can be worn with lots of different styles of clothes (everything but the most dressy ensembles), and yes, can be taken swimming without worry.

The best dive watches cost lots, and the most famous, the Rolex Submariner, is an iconic timepiece that will set you back $8,000. It will probably always be worth at least $8,000, and likely more, but still — expensive.

Pricey divers date can trace their legacies to the dive-watch boom of the middle-20th century, when scuba was popularized and practitioners needed a reliable timepiece to take underwater to keep track of their dive times so that they wouldn't use up their air and would have adequate time to ascend properly to the surface. 

This was when the Rolex Sub and other icons, such as the Blancpain Fifty Fathoms, were born. 

But another equally tough but far less costly dive watch also dates to this period.

It was made by Seiko.

And it still is. And Seiko sells it for about $250.

The model is the SKX007, in stainless steel case, with a stainless-steel bracelet and an automatic movement. It's has a Sub-like black face and bezel, but another version, the SKX175, is often described as having a "Pepsi" bezel — red and blue — and it resembles the Rolex GMT Master II in this respect.

This is one I have. 

It's a fantastic watch, substantial at 41 mm, and with a comfortable jubilee bracelet and a screw-down crown that sits at the 4 o'clock position. The unidirectional rotating bezel clicks around 120 times and once positioned for elapsed time, it doesn't move.

BI_Graphics_Rolex Submariner annotated_02

I bought it to beat senseless and then, with drama, remove from my wrist and hand to my son with he turns 18. Or maybe 20.

The point is that the more I wear the thing, the more I like it. I've never much cared for the Rolex Sub's aesthetics, although it's impossible to deny the Sub's influence (see above). The cyclops magnifier for the date has always bugged me, and I can't warm up to the "Mercedes" hour hand.

The great thing about the Seiko SKX diver is that although it might not be as technically advanced as the Rolex or many other luxury dive watches, it's looks good, it's depth-rated for 200 meters, which is fine for snorkeling, it has good wrist presence (I have small wrists and I can wear it easily), and with routine servicing it could be ticking away just as long or longer as anything costing thousands more and built in Switzerland.

SEE ALSO: This $105 watch knocked everything else off my wrist

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What wearing a $6,000 Rolex for a month taught a 24-year-old about wealth and status

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Rolex Explorer

I was so excited when it arrived. I opened the box and was immediately enraptured by its sublime beauty.

It seemed that this Rolex Explorer was made not out of stainless steel, but some kind of unearthly metal. Quite simply, it felt like nothing I had ever held before. I found myself checking the time on the watch not because I needed to know, but just because I wanted to catch a glimpse of its face again.

I was sure that this gorgeous piece of horological perfection was going to rock my world. 

But first impressions aren't everything, and infatuation eventually wears off.

As amazed as I was by the Rolex's hefty weight, incredible attention to detail, and pinpoint accuracy, I couldn't shake the feeling: I was wearing $6,000 on my wrist.

I didn't own the watch (it was a rental from the good folks at Eleven James, who let me try out their service), but that didn't change things. I was conscious of it nearly all of the time. Walking down the street, riding the subway, shopping in stores, I was aware of the (surprisingly not that heavy) lug of metal and clockwork on my wrist. The guilt was immediate and unavoidable.

This stemmed from my foolish fear that people would take notice of it, and therefore treat me differently. This fear ended up being completely unfounded, as only one friend noticed it before I told them about it. 

Only those with a keen eye for timepieces noticed what it was — pretty much everyone else completely ignored it, likely mistaking it for any other stainless steel watch and wristband. I'm pretty sure I got more comments on my usual Seiko 5, which I bought for just $60 on Amazon.

I realized nobody can really tell what you're wearing on your wrist, unless you show them intentionally. And if you're wearing an expensive watch, do you really want to shout about it? If you bring attention to it from anyone you don't know very well, you'll just look like a jerk.

I quickly realized that the only reason you should buy and wear an expensive watch is because you want to — not because you're trying to impress anyone. Unless you wheel and deal with watch aficionados all day, you're probably not going to.

Rolex Explorer

When you're spending this kind of cash on yourself, you should be spending it for your own enjoyment. Don't wear a luxury watch for prestige and status, because it's not going to work. The only ones who will notice and comment on it are the ones who are already experts. And if you get talking to them, and don't know your tourbillon from your chronograph, you'll look silly anyway. 

When I strapped on the Rolex, I thought it was going to change my world. It didn't, but it did change my world view.

SEE ALSO: Why luxury watches cost so much money

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The clock on a tiny church in Switzerland has been secretly maintained by Rolex for 70 years

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Swiss Rolex church

Rolex is one of the most secretive companies in the world.

Luckily, their secrets are mostly not of a nefarious sort, such as this one just recently revealed by watch journalist Alan Downing writing for Watch Around magazine, as found by Hodinkee.

It turns out that founder Hans Wilsdorf left some very specific instructions concerning a tiny church in Geneva, Switzerland before he died.

The church in question, the English Church of the Holy Trinity, has a clock that has been ticking for 147 years.

Downing discovered through the church's secretary that it was Rolex that maintained the clock; a representative from the company comes to wind it every Wednesday morning.

Downing tried to ask the Rolex technician who performed the service — one Antonio Garcia — what the deal was. But Garcia could only reveal that it was a free and exclusive service provided by the legendary watch brand — a service started way before his time.

Church records stated that they stopped paying for a watch winder in 1940. Wilsdorf died in 1960, so it must have been around that time that he decreed the clock be kept in good order by his company.

Wilsdorf was a member of the congregation of the church while he lived in Geneva. He likely adopted his faith during his time in London in his early years of watchmaking.

Downing tried to ask Rolex why exactly why the church clock was still on Rolex's to-do list, but he was completely stonewalled. No surprise there. However, reaching out to the charity that owns Rolex, The Hans Wilsdorf Foundation, was learned a bit.

Here's the response Downing got: "It is in keeping with Hans Wilsdorf’s personal wishes that the English church clock is maintained by Rolex," said the foundation representative.

"For how long?" asked downing.

"Forever, I suppose," came the reply.

Read the rest of the story in Watch Around.

SEE ALSO: Why luxury watches cost so much money

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Some of our favorite watch brands are available at major discounts this week

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The Insider Picks team writes about stuff we think you'll like. Business Insider has affiliate partnerships, so we may get a share of the revenue from your purchase.

Rolex ExplorerA few weeks ago we introduced you to Jomashop, an online watch retailer where you can find name-brand watches at major discounts.

And while the Insider Picks team loves a ton of smaller independent companies that make products, especially watches, there’s a reason that some brands are ubiquitous, and it usually has to do with their high-quality and the consistency of the product.

Jomashop is a company committed to helping customers find value in their quest for a fine timepiece. The site boasts a wide variety of brands at competitive prices, so if you’re in the market for anything from Bulgari to Seiko to Timex, and everything in between, chances are they’ll have an offer that you’d like to take advantage of. And as always, Amazon is a great place to find good value on watches.

The deals on both sites come and go pretty regularly, so every once and a while, we like to check in and see if there’s a deal or two worth letting you know about.

Chances are you can find the watch you want for a bit cheaper than you thought.

SEE ALSO: One of the biggest watches in Indiegogo history is available at a major discount today

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Fossil

I’m a big fan of the forest green face of this watch; together with the brown leather strap, it gives off a vibe that is casual and outdoorsy. If you removed the logo, it’d be fitting on the wrist of a character from a Wes Anderson film. The chronograph sports subdials that show 60-second, 60-minute, and 24-hour intervals for anyone interested in keeping track of lap times.

Fossil Pilot 54 Chronograph Dark Brown Leather Watch, $84.99, (normally retails for $125), available at Amazon.



Seiko

Another version of this watch made one of our recent lists, and this one makes the cut here for the same reason: If you're unsure of what to go with in the world of watches, safer is always better. This Seiko piece can go with every outfit in your closet. Also, the inside-out look of the hours and minutes on the dial is a fun twist on your standard watch face.

Seiko 5 Automatic Stainless Steel Watch, $56.10, (normally retails for $185), available at Amazon.



Rolex

Rolex and some of the other top-shelf brands of watches are out of my realistic price range for the time being, but if I ever get to a place where I can comfortably spend $5,000 or so on a watch, without putting myself into financial ruin, this is the style I would go for. Black, white, and silver, this Explorer gives off an immediate allure of luxury. I want to wear it with my finest suit and drink $100 cocktails.

Rolex Explorer Black Dial Domed Bezel Oyster Bracelet, $5,395, (normally retails for $6,550), available at Jomashop.



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This is why the Rolex Submariner is the ultimate luxury sport watch

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The Rolex Submariner might be the most famous watch in the world. Known officially as the "Rolex Oyster Perpetual Submariner," it debuted in 1953 and has been continuously improved ever since. In the 1950s, you could get one for $150, but the watch now retails for around $8,500. 

Prior to switching to Omega, James Bond wore the Rolex Sub. The timepiece has adorned the wrists of countless adventurers, dignitaries, captains of industry, and even actual divers, for whom the watch was designed. It is perhaps the best example of a tough "tool" watch becoming a luxury icon. 

Its toolness has never been compromised, however. You could buy one today, wear it to work at the office all week and then beat the daylights out of it on the weekends and it wouldn't complain. The Sub's automatic movement isn't as fancy as some other high-end watches, but it's basically bulletproof. And Sub's hold their value spectacularly well (although some critics consider it to be the most overpriced watch in existence). In the past decade, vintage Sub's have also become highly collectible.

It a true classic of modern horological design, often emulated but never equaled — or surpassed. Here's what makes the watch so great:

BI_Graphics_Rolex Submariner annotated_02

SEE ALSO: Apple's new partnership with Hermès makes it clear the tech company has no idea what the Apple Watch is supposed to be

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The most surprising thing about wearing a $6,000 Rolex for a month straight

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Rolex Explorer 2016

It's pretty reasonable to assume that a $6,000 object would change your life in a positive way. At least it better, for that amount of cash.

That's how much the Rolex I rented for a month would retail for normally. I got to try it out as an experiment with the startup Eleven James, which bills itself as a kind of Netflix for luxury watches.

I was ecstatic to receive and wear the watch, but my excitement quickly faded.

The most surprising thing, however, was just the fact that no one really noticed it was on my wrist. I never caught anyone staring at its shiny metal chassis, never got any admiring comments, and never had even one hint of recognition. 

This includes everything from drinks with friends, coffee with sources, and interviews with CEOs. No one who wasn't previously told about the watch took any notice of it.

Is this disappointing? Only if you're expecting the watch to give you a social leg up. If you expect it to endear you to watch-fanatic clients or get noticed by a watch-collecting CEO, that may not be the best reason to plunk down the equivalent to a used car.

The truth is that every shiny hunk of metal looks like every other shiny hunk of metal on your wrist. No one will likely call it out unless you call attention to it. And if you can figure out how to do that without sounding like a jerk, more power to you.

SEE ALSO: The clock on a tiny church in Switzerland has been secretly maintained by Rolex for 70 years

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Some of our favorite watch brands are available at major discounts this week

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The Insider Picks team writes about stuff we think you'll like. Business Insider has affiliate partnerships, so we may get a share of the revenue from your purchase.

Rolex in tuxA few weeks ago we introduced you to Jomashop, an online watch retailer where you can find name-brand watches at major discounts.

And while the Insider Picks team loves a ton of smaller independent companies that make products, especially watches, there’s a reason that some brands are ubiquitous, and it usually has to do with their high-quality and the consistency of the product.

Jomashop is a company committed to helping customers find value in their quest for a fine timepiece. The site boasts a wide variety of brands at competitive prices, so if you’re in the market for anything from Bulgari to Seiko to Timex, and everything in between, chances are they’ll have an offer that you’d like to take advantage of. And as always, Amazon is a great place to find good value on watches.

The deals on both sites come and go pretty regularly, so every once and a while, we like to check in and see if there’s a deal or two worth letting you know about.

And if you're considering dropping big money on a luxury watch, as with any other major purchase, be sure to compare prices and do some research first. While all of the watches are guaranteed to be 100% authentic, they do not come with a manufacturers warranty. If you have any concerns at all, you can view Jomashop's full warranty policy here.

SEE ALSO: One of the biggest watches in Indiegogo history is available at a major discount today

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Tissot

Tissot is probably the next brand of watch I’m going to buy — every time I start searching through Jomashop for deals, I find another watch from them that really impresses me. This chronograph looks really clean even with a fairly busy display, and I’m super into it.

Tissot PRC 200 Chronograph, $325 (retail: $575), available at Jomashop.



Diesel

Diesel has been an interesting brand to look at since I started paying more attention to watches. I respect them for never really playing it safe with their looks, but I will say that a lot of the brand’s offerings are a bit bold for my taste. However, this one caught my eye as a solid piece of casual wrist wear, with an attractive canvas strap to boot.

Diesel Machinus Champange, $79 (retail: $149), available at Jomashop.



Rolex

It’s going to be a while before I can afford to get a Rolex for myself, but until then I will continue checking them out and choosing my favorites to post here. If you gave me $7,000 right now, I would probably buy some concert tickets and pay off a few months of rent first, but if you gave me $14,000 right now I might treat myself to this Submariner.

Rolex Submariner, $6,750 (retail: $7,500), available at Jomashop.



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Why it's nearly impossible for Apple to beat Rolex (AAPL)

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In Apple's keynote today announcing its new smartwatch, the company claimed that it was the number 2 watchmaker in the world for watch revenue in 2015, right behind Rolex.

Apple touted this as a huge achievement — and it is. But many expected Apple to take the top spot with its irresistible gadgets that have a lower entry point than most of its Swiss and luxury watch competitors.

So how does Rolex keep a giant like Apple — which sells such a hyped-up product — at bay?

"Ultimately, [Rolex is] the king of the watch world. In terms of mass produced luxury high-end watches, the only one that even comes close would be Omega," Ben Clymer, editor of Hodinkee, told us in April. "And they're really not that close at the end of the day."

Rolex is Rolex for a reason. And that reason is the status and reputation the brand has cultivated over its 100 years of existence. Rolex's cult of personality is no accident.

"Actual innovation in the watchmaking field is what propels Rolex to where they are now," Clymer said.

To cement its status, Rolex never stopped inventing. They came up with the first waterproof case, the first self-winding watch, the first watch with a date, and (arguably) one of the first driving chronographs, which is used to measure lap times. On top of these innovations in watchmaking in the first half of the 1900s, Rolex developed a reputation being reliable.

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Rolex now touts this history in its advertising, attempting to make customers feel as though they're buying into a legacy instead of just the hottest new thing.

This helps explain why earlier this year, even though a luxury brand report rated the Apple Watch the most talked about luxury watch, Rolex was still rated highest on the "passion index," which measured how favorable that talk was.

The future, however, remains to be seen. With the release of an entirely new watch line, the Apple Watch Series II contains a few much-asked for features, like water resistance and GPS. The Swiss watch industry as a whole is also facing headwinds, though it's tough to say how that is affecting Rolex specifically.

For now, though, the king of watches keeps its crown.

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Apple is giving up on the high-end luxury watch market

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When Apple released the original Apple Watch in early 2015, it made a a pretty big play at the high-end watch market with its Edition line, which started at $10,000 and was encased in precious metals.

Most bloggers and technology journalists scoffed at this as a gimmick, but Apple was serious in its efforts. It gave celebrities like Beyoncé and designer Karl Lagerfeld the pricey watch to cultivate an air of exclusivity. The Apple Watch's first ads appeared not in a tech publication like Wired, but in Vogue.

With the announcement of the Apple Watch Series II at Wednesday's keynote, however, the only model that carries on the Edition name has a white ceramic case and not a glint of bling in sight, and it sells for a comparatively low $1,299. Since the watch is no longer encased in expensive precious metals, it is priced accordingly. The most expensive Apple Watch is part of the Hermés line, which pairs the watch with leather straps made by the French fashion house and is priced at $1,499.

The removal of the super-high-end watches from Apple's offerings is telling. 

"Apple is making an admission that it's not a luxury product in watches," James Dowling, co-author of "The Best of Time: Rolex Wristwatches" told Bloomberg.

Though Apple still considers the Apple Watch, and its new Apple Watch Edition with special ceramic material, a luxury item, it is no longer competing against the luxury Swiss behemoths on the high end of the luxury watch market like it once was. The least expensive Rolex, for example, costs roughly $6,000. In the low-to-mid luxury watch range, the prices are more in line with the higher end of the Apple Watch.

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Anyone who knows about the luxury watch market could tell you that selling expensive technology with a tendency to quickly become obsolete might not turn out well for Apple. Those who spend that kind of cash on things you wear on your wrist aren't looking for the latest tech, and they don't want to have to replace it next year (or maybe ever). 

Customers buying Swiss luxury watches are looking for both legacy and longevity, something that watchmakers like Rolex have in spades.

Rolex Ad

On top of that, the Swiss high-end luxury watch industry is in the midst of a serious downturn, which has shrunk the market at the same time Apple was looking to burst into it.

"[Apple is] making a declaration that it's no longer in the watch business, but that it's in the health-tracking business," Dowling said.

During its keynote Wednesday, Apple devoted far more time touting its newly deepened collaboration with Nike for a new line of sports watches. Wearables will likely be a category Apple can much more easily dominate than trying to chase the picky buyers accustomed to Swiss heritage and luxury.

Swiss watchmakers may take this as a sign that they were right not to chase Apple into wearables, instead remaining staid and relying on the strength of its legacy.

Just like the Swiss watchmakers were able to fend off cheap quartz-powered watches in the '70s and '80s, they have forced Apple downmarket and out of the high-end luxury watch category.

SEE ALSO: Why it's nearly impossible for Apple to beat Rolex

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Rolex is suddenly battling one of the biggest threats in history

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1969 marked the beginning of a revolution in the watch industry.

That was the year the Japanese watchmaker Seiko introduced the Seiko Quartz-Astron 35Q, the first watch to be powered by an electrical oscillator regulated by a quartz crystal.

It took nearly 10 years and teams of engineers to develop. But upon its release it immediately ushered in what is referred to by people in the watch industry as "the quartz crisis."

Until Seiko's Astron, Swiss watchmakers were king. In 1970 there were more than 1,500 Swiss watchmakers. But by the height of the "crisis" in 1983, their numbers stood at a mere 600.

The rise of the Quartz watch ultimately pushed Swiss watch companies into the luxury market.

According to Andrea Squatrito, the founder of RE Analytics, a big-data intelligence boutique based in Milan, new technology is once again drawing a battlefield for Swiss watchmakers. Squatrito's report called "Rolex: An industry under threat" outlines how the rise of smartwatches may pose a new threat for Swiss watch brands.

Squatrito's report identifies two main business segments for Rolex in particular: "people who are buying watches in the €2,500 to €11,000 range and people buying watches in the €23,000 to €33,000 range" (one euro is worth $1.06). Together these two segments account for 83% of the company's business.

Squatrito believes that Rolex's lower-end watches, which make up 45% of the company's customer base, are at risk of being challenged by high-end wearables like the Apple Watch Hermès.Screen Shot 2017 01 18 at 3.34.36 PM

"There are touch points in the lower end of luxury watches and the higher end of wearables," Squatrito said.

"The Apple Watch hasn't reached its full potential in terms of sales — yet — but there are signals that Swiss watch makers may soon see a large portion of their business threatened," Squatrito added.

Squatrito does not think the end is nigh for Rolex and other Swiss watchmakers. But he does think that increased competition from premium smartwatches will force them to make big changes.

"For instance," he concluded, "Rolex may follow the lead of fashion companies like Chanel and expand into non-core products to make up for the losses brought on by wearables."

SEE ALSO: A Wall Street guide to watches

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