Story Highlight
– Patek Philippe cuts US prices by 8.6%.
– Price adjustments respond to US tariff changes.
– Retailer margins reduced during previous price hikes.
– UK prices increase by 4% simultaneously.
– Rolex prices rose by 7% in January 2023.
Full Story
Patek Philippe has announced an 8.6% reduction in prices for its timepieces in the United States, reversing prior increases made in response to rising tariffs on Swiss imports.
This decision follows the Swiss luxury watchmaker’s earlier price hike of approximately 15% on September 15, shortly after the US government implemented a hefty 39% tariff on Swiss watches in August. It marked the second price adjustment within six months initiated by the US administration’s tariff measures, with a previous increase of 10% occurring in May.
To alleviate the impact of these tariffs, Patek Philippe not only raised prices but also reduced margins for its retail partners in America, sharing the financial burden among manufacturers, retailers, and customers.
In December, a plan was announced to lower tariffs to 15%, retroactive to November, although a formal trade agreement is yet to be finalized, and the overall tariff system is currently under review by the Supreme Court.
According to White House representatives, there is the possibility of refunds for the previous higher tariff rates, although specifics have not been disclosed.
The recent price adjustment in the United States appears to align with a global effort to ensure consistent pricing across markets. In contrast, a 4% price increase has taken effect in the UK.
Prior to these changes, Patek Philippe’s Cubitus Ref. 7128/1G-001 was priced at approximately $100,000 in the US, including varying state sales taxes. Meanwhile, in the UK, the same timepiece retailed for £65,600, equivalent to around $89,440 at current exchange rates. This significant price discrepancy prompted Patek Philippe to take action.
The updated cost for the white gold Cubitus in America is now around $90,860, inclusive of sales tax, whereas in the UK, the reconfigured price stands at £68,220, which translates to approximately $93,874. Without a recent 3% decline in the dollar’s value against the pound, the prices would have nearly matched on both sides of the Atlantic.
The luxury watch industry is grappling with broader economic factors beyond its immediate control, such as fluctuating tariffs, a declining dollar, and the soaring price of gold, which reached a record $5,418 per troy ounce last week before stabilizing just below $5,000.
Patek Philippe has similarly applied the 8.6% price decrease to both steel and gold watch models. For instance, the price of a 40mm gold Cubitus has decreased from $92,469 (excluding sales tax) to $84,522 in the US, while the Aquanaut model, reference 5968A-001, has reduced its price from $67,574 to $61,766.
However, in the UK, both models have experienced a 4% price increase.
In related news, Rolex adjusted its pricing in the US, with an average rise of 7% effective January 1. This included a 5.6% increase in the cost of steel watches and nearly a 9% hike for gold models. Over the past year, Rolex prices have risen by about 15%, with steel watches averaging a 10.6% increase since the end of 2024 and gold timepieces seeing an almost 20% rise.
