Audemars Piguet to Boost Production

[Cease676]

Not sure if this has already been posted (if so, mods please delete)

For what it’s worth:

https://www.bloomberg.com/news/artic...d&cmpId=google


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[Seddyspaghetti]

Interesting, thanks for sharing

[Vince_76]

Thanks for sharing. 5k increase doesn’t sound like much, but it’s an 11% increase on prior production, which is significant.

[texasmade]

$1.5B at 45,000 watches equals avg revenue per watch at $33,333. I thought it would be higher at closer to $40,000 per watch.

[Reign]

Originally Posted by texasmade

$1.5B at 45,000 watches equals avg revenue per watch at $33,333. I thought it would be higher at closer to $40,000 per watch.

This is from last year but it’s a solid price per watch among the industry. Caveat that these are largely estimates since some of these are private

[Jgives]

Originally Posted by Reign

This is from last year but it’s a solid price per watch among the industry. Caveat that these are largely estimates since some of these are private

Awesome. Thanks for sharing.

[DonLee]

Originally Posted by Reign

This is from last year but it’s a solid price per watch among the industry. Caveat that these are largely estimates since some of these are private

FP Journe... damn. $68k avg price

[Henrimontgomery]

More code 11:59 to be produced.

[henrylee]

They will likely increase the volume of their CODE11:59 watches as a gate way watch for people seeking to obtain a RO.

[Henrimontgomery]

Yes. Now you need to buy 1 code to be able to buy a second code chrono and then you have the right to get in the list for a Royal oak (chrono only, black or white).

[GW44]

Originally Posted by Henrimontgomery

Yes. Now you need to buy 1 code to be able to buy a second code chrono and then you have the right to get in the list for a Royal oak (chrono only, black or white).

Good job you’re not bitter, at all

[VogelPhoenix]

Originally Posted by Cease676

Not sure if this has already been posted (if so, mods please delete)

For what it’s worth:

https://www.bloomberg.com/news/artic...d&cmpId=google

There was some additional info in a different article (that I can't locate right now), claiming that this was the last of large-ish increases planned from 2019-now, followed by a slower ramp-up in future years, presumably up to reaching the 60k/year capacity of the new factory under construction.

[huncho]

like others have stated, likely a large amount of that will be codes. they're too smart to start diluting the RO market

[VogelPhoenix]

Originally Posted by huncho

like others have stated, likely a large amount of that will be codes. they're too smart to start diluting the RO market

Maybe, maybe not. I don't think the smart move is to have scores of CODEs collecting dust while ROs are impossible even for clients with good history. Much better to ~ match CODE production to demand (wether genuine or part of relationship-building) and spread scarcity across all model lines.

[huncho]

Originally Posted by VogelPhoenix

Maybe, maybe not. I don't think the smart move is to have scores of CODEs collecting dust while ROs are impossible even for clients with good history. Much better to ~ match CODE production to demand (wether genuine or part of relationship-building) and spread scarcity across all model lines.

are codes selling? genuine question because last time i was in the boutique (last year) there was nothing there and i have the 1 piece i wanted so i haven't really kept up with what's going on at boutiques. AP is in an interesting spot, a good amount of their market overlapped with rolex's market because you could get an AP for less than a gold rolex but now i feel like they've priced out a huge part of that market with steel APs going for more than gold rolexes that already sell at premiums

[thekman]

Originally Posted by huncho

are codes selling? genuine question because last time i was in the boutique (last year) there was nothing there and i have the 1 piece i wanted so i haven't really kept up with what's going on at boutiques. AP is in an interesting spot, a lot of their buyers used to be rolex owners who wanted to go up the ladder for a bit more money but now i feel like they've priced out a huge part of that market

For the first few months when the Boston boutique opened there used to be 2-3 Codes at all times. For the past few months I have not seen a single one. They couldn't even promise me if the can allocate me one. So yes they do sell every single one they make.

[huncho]

Originally Posted by thekman

For the first few months when the Boston boutique opened there used to be 2-3 Codes at all times. For the past few months I have not seen a single one. They couldn't even promise me if the can allocate me one. So yes they do sell every single one they make.

makes sense with how insane the premiums for ROs are. you could get both for the price of one if you wanna play their game which to me is 100% worth it if they can deliver

[7sins]

Interesting to do the math here. To my understanding there are ~225 AP boutiques and stores. 5000 increase in production divided by 225 is ~23. Which means each stores gets an extra 2 models per month this year in production. I would suspect some boutiques receive more than others but guessing my odds of getting more than one actual allocation is still zero

[Mbbgysam]

Movements are by and large the limiting factor. Making more Codes doesn’t solve this problem, but replacing in house movements with outside ebauches sure helps. I’d argue that’s AP’s short term ramp up strategy with the Vaucher movements we see in the 34mm and new 37mm ROs.

[VogelPhoenix]

Originally Posted by Mbbgysam

Movements are by and large the limiting factor. Making more Codes doesn’t solve this problem, but replacing in house movements with outside ebauches sure helps. I’d argue that’s AP’s short term ramp up strategy with the Vaucher movements we see in the 34mm and new 37mm ROs.

Interesting point. Makes the choice between 15450 and 15550 a bit more difficult, and if the 15450 and variants are discontinued that's the end for the once ubiquitous cal 3120.

[Mbbgysam]

Originally Posted by VogelPhoenix

Interesting point. Makes the choice between 15450 and 15550 a bit more difficult, and if the 15450 and variants are discontinued that's the end for the once ubiquitous cal 3120.

I would lean toward the 50th anniversary 15550, but if we're talking standard production then I think I'd stick with the 15450.

[Ichiran]

This is good news. Hopefully I can get my first ever AP from the Boutique.

[PBJ1925]

Thanks for the chart, pretty cool stats. Didn't realize the incredible volume Longines does globally, and how low Oris is as I found them categorically similar in entry level 'luxury' watches.

[macrowatch]

I wonder if that includes the desk clocks with actual movements given as gifts.

[VFA]

AP is going downhill fast.

New movements look very industrial. Not much hand finishing.

Monoblock case is gone for a less costly 3 piece case construction.

These cost cutting measures some others I am sure will allow them to free up personnel and increase production.

AP has become too industrialized. Its a company with a billion dollar revenue.

I am becoming less of a fan.

[macrowatch]

Originally Posted by VFA

AP is going downhill fast.

New movements look very industrial. Not much hand finishing.

Monoblock case is gone for a less costly 3 piece case construction.

These cost cutting measures some others I am sure will allow them to free up personnel and increase production.

AP has become too industrialized. Its a company with a billion dollar revenue.

I am becoming less of a fan.

It's never too late to join the RM or FPJ wagon!

[VFA]

Originally Posted by macrowatch

It's never too late to join the RM or FPJ wagon!

I wouldn't be caught dead wearing an RM but would love to get a Journe one day.

[Mini2]

Originally Posted by VFA

AP is going downhill fast.

New movements look very industrial. Not much hand finishing.

Monoblock case is gone for a less costly 3 piece case construction.

These cost cutting measures some others I am sure will allow them to free up personnel and increase production.

AP has become too industrialized. Its a company with a billion dollar revenue.

I am becoming less of a fan.

Majority of new clients don't care they just want what's HOT

[VogelPhoenix]

Originally Posted by Mini2

Majority of new clients don't care they just want what's HOT

Wantin' and gettin' are not the same, for better or worse.

[VFA]

Originally Posted by Mini2

Majority of new clients don't care they just want what's HOT

Yes. Its has become too industrial and too mainstream. Too much hype behind it.

I have grown cold to AP. It doesn't excite me anymore.

I look at AP and I only see a corporation trying to maximize revenue and profits. Compromising on quality and increasing production. With this much hype they can do so. They dont need to impress with quality and finishing anymore.

Good for the shareholders.