Audemars Piguet Says Swatch Royal Pop Collaboration Breaks Sales Records Amid Luxury Slump and Tariffs

The May launch generated more than 20 billion mentions and conversations on social media, Resta said. Swatch used Instagram to ask customers "not to rush to our stores." The collaboration also prompted debate within the luxury industry over whether Audemars Piguet, whose watches often sell for more than $30,000, had cheapened a brand counted among Switzerland's "Holy Trinity" of watchmakers alongside Patek Philippe and Vacheron Constantin.

Resta rejected that concern. She said sales and interest in Audemars Piguet have skyrocketed, with millions of young consumers suddenly exploring mechanical watches and horology. Even the company's top collectors have called to request Royal Pop pieces, she said. "We've had a record month every month since the launch of the Royal Pop," Resta said. "Our website crashed. We have nonstop visits in our boutiques."

The company's results stand out as the $50 billion Swiss watch industry declines. The number of Swiss watches exported globally has fallen by more than half since 2011, and total sales dropped 1.7% last year, according to a Morgan Stanley and LuxeConsult report. Although about 450 Swiss watch brands exist, the top four — Rolex, Patek Philippe, Audemars Piguet and Richard Mille — now account for about half of industry sales and about 76% of profits, the report found.

At the high end, supply remains scarce. Audemars Piguet produces 53,000 watches a year, compared with more than 1 million by Rolex, according to Morgan Stanley. Its Royal Oak models typically start at $30,000, with the most complicated selling for more than $200,000. Waitlists are long, and preowned Audemars Piguet watches typically sell for 30% or more above retail because supply is so limited.

Resta said Swiss brands that rely on their history, older clientele and elitist marketing face extinction. "Either you dare or you die," she said. She described her strategy as "radical openness," aimed at opening elite Swiss watchmaking to a broader, younger audience. Besides Royal Pop, Audemars Piguet is rolling out AP Labs, pop-up experiences where visitors can play watch-themed games, learn about movements and complications, watch watchmakers at work and try fastening tiny components. Resta said no watches are sold at AP Labs; the purpose is education and recruiting new watchmakers for an industry short of skilled craftspeople.

"This is a category that is born and fueled by love, passion and understanding," Resta said. "If you do not understand watchmaking, you will never appreciate a mechanical watch. You will always default to the easiest and cheapest way to tell the time. Telling time is the last reason you buy a mechanical watch. You buy it because you understand the mechanical invention behind it, you appreciate the movement, you appreciate the aesthetics and the meaning of an object that is meant to last forever."

Audemars Piguet remains private and family-owned and does not report revenue or profits. Resta said the company recorded organic sales growth of 10% in 2025, driven mainly by more complicated, higher-priced watches, and that 2026 "will beat that record even further." The company is donating all proceeds from the Royal Pop collaboration to a dedicated initiative to train and educate watchmakers.

The company also faces pressure from U.S. tariffs. The United States has imposed a series of tariffs on Swiss goods over the past year, with the current rate reaching up to 12.5%. Expensive Swiss watches have been hit especially hard. Swiss watch exports to the U.S. fell 19% in August, even as worldwide exports grew 9%, according to the Federation of the Swiss Watch Industry. Industry analysts say wealthy buyers can afford the extra tax, but some are choosing to delay purchases or deliveries until the tariff is lifted or lowered.