The quartz crisis (Swiss) or quartz revolution (American, Japan and other countries) was the advancement in the watchmaking industry caused by the advent of quartz watches in the 1970s and early 1980s, that largely replaced mechanical watches around the world. [1] [2] It caused a significant decline of the Swiss watchmaking industry, which chose to remain focused on traditional mechanical watches, while the majority of the world's watch production shifted to Japanese companies such as Seiko, Citizen and Casio which embraced the new electronic technology. [3] [4] [5] The strategy employed by Swiss makers was to call this revolution a 'crisis' thereby downgrading the advancement from Japanese brands.
The quartz crisis took place amid the postwar global Digital Revolution (or "Third Industrial Revolution"). [6] [7] The crisis started with the Astron , the world's first quartz watch, which was introduced by Seiko in December 1969. [3] [4] [8] [9] The key advances included replacing the mechanical or electromechanical movement with a quartz clock movement as well as replacing analog displays with digital displays such as LED displays and later liquid-crystal displays (LCDs). [3] [4] [9] In general, quartz timepieces are much more accurate than mechanical timepieces, in addition to having a generally lower cost and therefore sales price. [3] [4] [10]
During World War II, Swiss neutrality permitted the watch industry to continue making consumer time-keeping apparatus, while the major nations of the world shifted timing apparatus production to timing devices for military ordnance. As a result, the Swiss watch industry enjoyed an effective monopoly. The industry prospered in the absence of any real competition. Thus, prior to the 1970s, the Swiss watch industry had 50% of the world watch market. [11]
In the early 1950s a joint venture between the Elgin Watch Company in the United States and Lip of France to produce an electromechanical watch – one powered by a small battery rather than an unwinding spring – laid the groundwork for the quartz watch. [12] Although the Lip-Elgin enterprise produced only prototypes, in 1957 the first battery-driven watch was in production, the American-made Hamilton 500.
In 1954, Swiss engineer Max Hetzel developed an electronic wristwatch that used an electrically charged tuning fork powered by a 1.35 volt battery. [13] The tuning fork resonated at precisely 360 Hz and it powered the hands of the watch through an electromechanical gear train. This watch was called the Accutron and was marketed by Bulova, starting in 1960. Although Bulova did not have the first battery-powered wristwatch, the Accutron was a powerful catalyst, as by that time the Swiss watch-manufacturing industry was a mature industry with a centuries-old global market and deeply entrenched patterns of manufacturing, marketing, and sales.
In the late 1950s and early 1960s, both Seiko and a consortium of Switzerland's top watch firms, including Patek Philippe, Piaget, and Omega, fiercely competed to develop the first quartz wristwatch. [4] [14] In 1962, the Centre Electronique Horloger (CEH), consisting of around 20 Swiss watch manufacturers, was established in Neuchâtel to develop a Swiss-made quartz wristwatch, while simultaneously in Japan, Seiko was also working on an electric watch and developing quartz technology. [15]
One of the first successes was a portable quartz clock called the Seiko Crystal Chronometer QC-951. This portable clock was used as a backup timer for marathon events in the 1964 Summer Olympics in Tokyo. [4] In 1966, prototypes of the world's first quartz pocket watch were unveiled by Seiko and Longines in the Neuchâtel Observatory's 1966 competition. [16] In 1967, both the CEH and Seiko presented prototypes of quartz wristwatches to the Neuchâtel Observatory competition. [4] [17]
On 25 December 1969, Seiko unveiled the Astron, the world's first quartz watch, which marked the beginning of the quartz revolution. [3] [4] [16] [18] The first Swiss quartz analog watch – the Ebauches SA Beta 21 – arrived at the 1970 Basel Fair. [16] [19] The Beta 21 was released by numerous manufacturers including the Omega Electroquartz. On 6 May 1970, Hamilton introduced the Pulsar – the world's first electronic digital watch. [20] In 1971 Girard-Perregaux introduced the Caliber 350, with an advertised accuracy within about 0.164 seconds per day, which had a quartz oscillator with a frequency of 32,768 Hz, which was faster than previous quartz watch movements and has since become the oscillation frequency used by most quartz clocks. [21] [22]
In 1974 Omega introduced the Omega Marine Chronometer, the first quartz watch ever to be certified as a marine chronometer, accurate to 12 seconds per year using a quartz circuit that produces 2,400,000 vibrations per second. In 1976 Omega introduced the Omega Chrono-Quartz, the world's first analogue-digital chronograph, which was succeeded within 12 months by the Calibre 1620, the company's first completely LCD chronograph wristwatch.
Despite these dramatic advancements, the Swiss hesitated to embrace quartz watches. At the time, Swiss mechanical watches dominated world markets. In addition, excellence in watchmaking was a large component of Swiss national identity. From their position of market strength, and with a national watch industry organized broadly and deeply to foster mechanical watches, many in Switzerland thought that moving into electronic watches was unnecessary. Others outside Switzerland, however, saw the advantage and further developed the technology. [23] By 1978, quartz watches overtook mechanical watches in popularity, plunging the Swiss watch industry into crisis while at the same time strengthening both the Japanese and American watch industries. This period of time was marked by a lack of innovation in Switzerland at the same time that the watch-making industries of other nations were taking full advantage of emerging technologies, specifically quartz watch technology, hence the term "quartz crisis".
As a result of the economic turmoil that ensued, many once-profitable and famous Swiss watch houses became insolvent or disappeared. This period of time completely upset the Swiss watch industry both economically and psychologically. During the 1970s and early 1980s, technological upheavals, i.e. the appearance of the quartz technology, and an otherwise difficult economic situation resulted in a reduction in the size of the Swiss watch industry. Between 1970 and 1983, the number of Swiss watchmakers dropped from 1,600 to 600. [24] [25] Between 1970 and 1988, Swiss watch employment fell from 90,000 to 28,000. [16]
Outside Switzerland, the crisis is often referred to as the "quartz revolution", particularly in the United States where many American companies had gone out of business or had been bought out by foreign interests by the 1960s. When the first quartz watches were introduced in 1969, the United States promptly took a technological lead in part due to microelectronics research for military and space programs. American companies like Texas Instruments, Fairchild Semiconductor, and National Semiconductor started the mass production of digital quartz watches and made them affordable. [1] It did not remain so forever; by 1978 Hong Kong exported the largest number of electronic watches worldwide, and US semiconductor companies came to pull out of the watch market entirely. With the exception of Timex and Bulova, the remaining traditional American watch companies, including Hamilton, went out of business and sold their brand names to foreign competitors; Bulova would ultimately sell to the Japanese-owned Citizen in 2008. [26]
By 1983, the crisis reached a critical point. The Swiss watch industry, which had 1,600 watchmakers in 1970, had declined to 600. [24] [25] In March 1983, the two biggest Swiss watch groups, ASUAG (Allgemeine Schweizerische Uhrenindustrie AG) and SSIH (Société Suisse pour l'Industrie Horlogère), merged to form ASUAG/SSIH in order to save the industry. [27] This organization was renamed SMH (Société de Microélectronique et d'Horlogerie) in 1986, and then The Swatch Group in 1998. [27] It would be instrumental in reviving the Swiss watch industry; today, the Swatch Group is the largest watch manufacturer in the world. [28]
The Swatch product was sealed in a plastic case, sold as a disposable commodity with little probability of repair, and had fewer moving parts (51) than mechanical watches (about 91). Furthermore, production was essentially automated, which resulted in higher profitability. [29] The Swatch was a huge success; in less than two years, more than 2.5 million Swatches were sold. [15] Besides its own product line Swatch, the Swatch Group also acquired other watch brands including Blancpain, Breguet, Glashütte Original, Harry Winston, Longines, Omega, Hamilton and Tissot. [30] [31]
The larger global market still largely reflected other trends, however. In the US domestic market, for example, the Swatch was something of a 1980s fad resting largely on variety of colors and patterns, and the bulk of production still came from offshore sites such as China and Japan, in digitally-dominated or hybrid brands like Casio, Timex, and Armitron.
On the other hand, the quartz revolution drove many Swiss manufacturers to seek refuge in (or be winnowed out to) the higher end of the market, such as Patek Philippe, Vacheron Constantin, Audemars Piguet, and Rolex. Mechanical watches have gradually become luxury goods appreciated for their elaborate craftsmanship, aesthetic appeal, and glamorous design, sometimes associated with the social status of their owners, rather than simple timekeeping devices. [32] [33]
Since the 2010s, smartwatches have begun to significantly increase their shares in the global watch market, especially after the launch of the Apple Watch in 2015. [34] [35] [36] There are concerns over the formation of a new type of crisis which may further threaten the Swiss watchmaking industry. [37] [38] [36] [39]
A watch is a portable timepiece intended to be carried or worn by a person. It is designed to keep a consistent movement despite the motions caused by the person's activities. A wristwatch is designed to be worn around the wrist, attached by a watch strap or other type of bracelet, including metal bands, leather straps, or any other kind of bracelet. A pocket watch is designed for a person to carry in a pocket, often attached to a chain.
The Swatch Group Ltd is a Swiss manufacturer of watches and jewellery. The company was founded in 1983 by the merger of ASUAG and SSIH to move to manufacturing quartz-crystal watches to resolve the quartz crisis threatening the traditional Swiss watchmaking industry.
Seiko Group Corporation, commonly known as Seiko, is a Japanese maker of watches, clocks, electronic devices, semiconductors, jewelry, and optical products. Founded in 1881 by Kintarō Hattori in Tokyo, Seiko introduced the world's first commercial quartz wristwatch in 1969.
Bulova is an American timepiece manufacturing company that was founded in 1875 and has been owned by Japanese multinational conglomerate Citizen Watch Co. since 2008. The company makes watches, clocks and accessories, and it is based in New York City.
Omega SA is a Swiss luxury watchmaker based in Biel/Bienne, Switzerland. Founded by Louis Brandt in La Chaux-de-Fonds in 1848, the company formerly operated as La Generale Watch Co. until incorporating the name Omega in 1903, becoming Louis Brandt et Frère-Omega Watch & Co. In 1984, the company officially changed its name to Omega SA and opened its museum in Biel/Bienne to the public. Omega is a subsidiary of The Swatch Group.
A chronograph is a specific type of watch that is used as a stopwatch combined with a display watch. A basic chronograph has an independent sweep second hand and a minute sub-dial; it can be started, stopped, and returned to zero by successive pressure on the stem. More complex chronographs use additional complications and can have multiple sub-dials to measure seconds, minutes, hours and even fractions of a second. In addition, many modern chronographs use moveable bezels as tachymeters for rapid calculations of speed or distance. Louis Moinet invented the chronograph in 1816 for use in tracking astronomical objects. Chronographs were also used heavily in artillery fire in the mid to late 1800s. More modern uses of chronographs involve aircraft piloting, auto racing, diving and submarine maneuvering.
Vacheron Constantin SA is a Swiss luxury watch and clock manufacturer founded in 1755. Since 1996, it has been a subsidiary of the Swiss Richemont Group. Vacheron Constantin is one of the oldest watch manufacturers in the world with an uninterrupted watchmaking history since its foundation in 1755. It employs around 1,200 people worldwide as of 2018, most of whom are based in the company's manufacturing plants in the Canton of Geneva and Vallée de Joux in Switzerland.
Swatch is a Swiss watchmaker founded in 1983 by Ernst Thomke, Elmar Mock, and Jacques Müller. It is a subsidiary of The Swatch Group. The Swatch product line was developed as a response to the "quartz crisis" of the 1970s and 1980s, in which inexpensive, battery-powered, quartz-regulated watches were competing against more established European watchmakers, focused on artisanal craftsmanship producing mostly mechanical watches.
Oris SA is a Swiss luxury manufacturer of mechanical watches. The company was founded in 1904 and is based in Hölstein in the canton of Basel-Landschaft.
The Hamilton Watch Company is a Swiss manufacturer of wristwatches based in Bienne, Switzerland. Founded in 1892 as an American firm, the Hamilton Watch Company ended American manufacture in 1969. Through a series of mergers and acquisitions, the Hamilton Watch Company eventually became integrated into the Swatch Group, the world's largest watch manufacturing and marketing conglomerate.
Citizen Watch Co., Ltd. is an electronics company primarily known for its watches and is the core company of a Japanese global corporate group based in Nishitokyo, Tokyo, Japan. In addition to Citizen brand watches, it is the parent of American watch company Bulova, and is also known for manufacturing small electronic devices such as calculators.
Breguet is a Swiss luxury watch, clock and jewelry manufacturer founded by Abraham-Louis Breguet in Paris in 1775. Since 1999, it has been a subsidiary of the Swiss Swatch Group. Headquartered in L'Abbaye, Switzerland, Breguet is one of the oldest surviving watchmaking brands and a pioneer of numerous watchmaking technologies such as the tourbillon, which was developed into a practical solution by Abraham Breguet in 1801, after having been invented by his friend John Arnold. Abraham Breguet also invented and produced the world's first self-winding watch in 1780, as well as the world's first wristwatch in 1810.
Compagnie des Montres Longines, Francillon S.A., or simply Longines, is a Swiss luxury watchmaker based in Saint-Imier, Switzerland. Founded by Auguste Agassiz in 1832, the company has been a subsidiary of the Swiss Swatch Group and its predecessors since 1983. Its winged hourglass logo, registered in 1889, is the oldest unchanged active trademark registered with WIPO.
Audemars Piguet Holding SA is a Swiss manufacturer of ultra luxury watches, headquartered in Le Brassus, Switzerland. The company was founded by Jules Louis Audemars and Edward Auguste Piguet in the Vallée de Joux in 1875, acquiring the name Audemars Piguet & Cie in 1881. The company has been family-owned since its founding.
The history of watches began in 16th-century Europe, where watches evolved from portable spring-driven clocks, which first appeared in the 15th century.
Blancpain SA is a Swiss luxury watch manufacturer, headquartered in Paudex/Le Brassus, Switzerland. It designs, manufactures, distributes, and sells prestige and luxury mechanical watches. Founded by Jehan-Jacques Blancpain in Villeret, Switzerland in 1735, Blancpain is the oldest registered watch brand in the world. Blancpain has been a subsidiary of the Swiss Swatch Group since 1992, and is regarded as a top-tier watch brand.
In horology, the term electric watch is used for the first generation electrically-powered wristwatches which were first publicly displayed by both Elgin National Watch Company and Lip on March 19, 1952, with working laboratory examples in Chicago and Paris. The Hamilton Watch Company would be the first to produce and retail an electric watch beginning in 1957, before the commercial introduction of the quartz wristwatch in 1969 by Seiko with the Astron. Their timekeeping element was either a traditional balance wheel or a tuning fork, driven electromagnetically by a solenoid powered by a battery. The hands were driven mechanically through a wheel train. They were superseded by quartz watches, which had greater accuracy and durability due to their lower parts count. Recent automatic quartz watches, which combine mechanical technology with quartz timekeeping, are not included in this classification.
Quartz clocks and quartz watches are timepieces that use an electronic oscillator regulated by a quartz crystal to keep time. This crystal oscillator creates a signal with very precise frequency, so that quartz clocks and watches are at least an order of magnitude more accurate than mechanical clocks. Generally, some form of digital logic counts the cycles of this signal and provides a numerical time display, usually in units of hours, minutes, and seconds.
An observatory chronometer is a timepiece that has passed stringent testing and a slate of accuracy tests. Thus, the "observatory trial" developed as the standard process for determining accuracy of timepiece movements. If the chronometer passed the stringent testing, it would be certified.
The Omega Electroquartz was introduced in 1969 as the first Swiss quartz watch to be produced. It was the collaboration of 20 Swiss watch companies and the movement was utilised by Rolex, Patek Phillipe and Omega amongst others. The Beta 21 movement used in the Electroquartz was accurate to 5 seconds per month, far better than any automatic or manual wind movement of the day.