Swiss watchmaker Swatch saw its share value fall 4.5% on the day the Apple Watch Series 3 was launched, as Apple announced that its smartwatch is now the biggest-selling watch in the world. That wiped almost a billion dollars off Swatch's market cap, and investors think there's worse to come.
Business Insider noted that options - which effectively allow investors to bet on a rise or fall in a share price - are strongly favoring a further fall.
What's more, four of the five Swatch options contracts with the highest open interest - defined as outstanding commitments trading at present time - are bearish puts [betting on a fall].
Some traditional watch manufacturers had suggested that smartwatches would be a passing fad, and that traditional watches would reassert themselves - perhaps even benefiting from renewed interest in wearables - but an analyst cited by Bloomberg says these hopes have now been dashed.
"Far from being a flash in the pan, smartwatches are bound to stay and continue to upgrade their functionality - the recently announced new Apple Watch is a case in point," said Luca Solca, an analyst at Exane BNP Paribas
