Rolex Production & What You Need To Know
A hot topic in the watch world is Rolex production. Demand for their watches has risen to a level where it far surpasses supply. What that creates is an unsettled market where pre-owned prices have skyrocketed and lengthy waitlists are prevalent. For many of us, we wonder why Rolex simply doesn’t increase their production capabilities. After all that is what we have become accustomed to with almost every other business or industry in our lives. The goal is usually to grow with your customer base, not limit growth. Because of this, many people have questions regarding Rolex production, future plans, and what can be done.
In this article we’ll answer some of the most popular yet basic questions that many have concerning the topic of Rolex production.
How Many Watches Does Rolex Make A Year
Although Rolex doesn’t announce how many watches they make in a year, the most widely acceptable number of watches they produce is roughly 1,000,000 annually.
The ability to manufacture 1 million watches in a year is an amazing feat. Considering that it’s impossible the find a new Rolex in a case at an authorized dealer just shows how popular the brand and their watches are.
Where Are Rolex Watches Made
Rolex watches are manufactured and assembled in Geneva Switzerland. Geneva is widely considered to be the heart of the watchmaking world. The best watchmakers are located there and you can bet that Rolex has their fair share of talent designing and making their watches.
What Is Rolex Market Share In The Luxury Watch Industry
According to WatchTime, Rolex owns 24.9% of the luxury watch market. The next closest competitor is Omega with 8.8%. With roughly a quarter of the entire marketshare, Rolex dominates the watch market. Even if you can’t find a new Rolex watch at an authorized dealer that doesn’t mean that they aren’t producing tons of amazing watches.
How Many Stainless Steel Daytonas Are Produced Each Year
Roughly 2.5% of Rolex production are stainless steel Daytona watches. There is no doubt that the stainless steel Daytona is the most popular and hardest Rolex to acquire. We all wish that Rolex would produce more of these but at the same time an influx of these watches would take away from their elite exclusivity.
How Much Does It Cost To Make A Rolex Watch
The cost to produce an average Rolex watch is between $2,500 – $4,000. Factors that include precious metals and complications will add to the costs of making a Rolex but for the most popular stainless steel references, the $2,500 to $4,000 range is accurate for Rolex average costs.
For the full price list of Rolex watches, view our Rolex Pricing Guide.
Will Rolex Increase Their Production Capabilities
Rolex is always finding opportunities to improve their production capabilities. That doesn’t always include building more manufacturing facilities though, which many of us would like to see. We’ve observed Rolex consolidate movements and use synergies to allow themselves to produce more watches within their current production capacities. All of which are intended to allow them to produce more of the watches that we have come to love.
To learn more about the supply shortage of Rolex, check out our article discussing the Rolex Supply Shortage.
Why Hasn’t Rolex Invested More In Production
Rolex is known to be slower and more methodical in their decision making. Investing in a new manufacturing facility would be a major leap for them. Even with uncertain market conditions, the privately owned company already knows that they are the largest luxury watchmaker who is guaranteed to sell every watch they make. There is comfort in that and changing it might present additional risks.