Patek Philippe is one of the most prestigious luxury watch brands in the world. Aside from the incredible craftsmanship and attention to detail that goes into each individual watch, one of the ways the brand has carefully crafted its image has been through a strategy based on exclusivity and intentional scarcity, with relatively few watches being produced each year when compared to some of Patek Philippe’s main rivals, including Rolex.
This combination of high-quality and exclusivity mean that Patek Philippe watches are highly sought after and this, in turn, has an impact on the price. In this article, we will take a more comprehensive look at the Patek Philippe brand and answer a common question: why are Patek Philippe watches so expensive?
The Legacy of Patek Philippe
Patek Philippe was founded in 1839 and is one of the most prestigious brands in all of watchmaking. In fact, it is difficult to overstate Patek Philippe’s importance within the world of Swiss luxury watches. After all, Patek Philippe created the first ever luxury Swiss wristwatch in 1868, while some of the brand’s other firsts have included the first split-second chronograph wristwatch and the first lady’s wristwatch to feature a complication.
In addition to this reputation for innovation, Patek Philippe is recognized around the world for exquisite craftsmanship and excellent precision. The manufacturer has been creating high-quality, luxury Swiss wristwatches for well over a century and this uninterrupted watchmaking history provides a great sense of tradition too.
Ultimately, these factors have all combined to enable Patek Philippe to create an incredible legacy. The innovation on offer, the quality of the timepieces, and Patek Philippe’s long history of producing immaculate timepieces are all major contributing factors to why the brand’s watches are so expensive.
Patek Philippe Quality and Craftsmanship
Any worthwhile exploration of why Patek Philippe watches are so expensive needs to focus on the quality of the watches and the overall craftsmanship involved, as these both serve as key contributing factors. The company has its own internal research and development department, which is always evaluating techniques and materials.
It is important to highlight the fact that every single Patek Philippe watch is produced in-house. This includes all components that make up the case and the movement. Watches are produced, assembled and hand-finished in a painstaking process. Most watches from the brand take up to four years to produce. More complex Patek Philippe watches can take up to six years to produce, and the most complicated models of all may take eight years in total.
Such attention to detail comes at an obvious cost to the consumer. Moreover, the exclusive use of high-quality materials – from immaculate and consistent diamonds, to platinum or 18k gold – means the watches are robust, visually pleasing, and no expense is spared during the production process. In terms of quality, this places Patek Philippe at the very highest echelon, along with other prestigious brands like Rolex and Audemars Piguet.
Patek: Limited Availability and Exclusivity
The high price point associated with Patek Philippe watches is also partially a strategic move from the company and is linked to the concept of limited availability or scarcity. With fewer Patek Philippe watches on the market than some of the other major luxury watch brands, a sense of exclusivity is created and this then drives demand.
All through the history of the business, Patek Philippe has kept its production numbers relatively low. Today, these numbers stand at around 60,000 watches being produced each year. In fact, it is estimated that since the company’s foundation, fewer than one million Patek Philippe watches have ever been released to the public.
To put this in perspective, it is believed that one million Rolex watches are produced each year. This means that the annual production numbers for Rolex are likely to exceed the total lifetime production numbers from Patek Philippe. Understandably, this means that Patek Philippe watches feel like more of a collector’s item to be passed down the generations, and the scarcity of the watches means buyers are willing to pay much higher prices.
Out of the top ten most expensive watches ever sold at auction, the vast majority are Patek Philippe watches. This includes the Patek Philippe Grandmaster Chime Ref. 6300A-010, which sold for more than $31 million.
Investment Value of a Patek Philippe Watch
So why are Patek Philippe watches so expensive and yet still so desirable and highly sought after, aside from the prestige associated with the brand, the quality of the craftsmanship, and the feeling of exclusivity? One of the reasons is because a Patek Philippe watch can end up being an extremely good long-term investment. Generally, luxury watches lose value over time, but there are many examples of Patek Philippe watches gaining value instead.
For example, the Patek Philippe Henry Graves Supercomplication watch was commissioned in 1925 by the banker, Henry Graves Jr. The watch finished production in 1933 and the total cost is reported to have been around $15,000. Adjusted for inflation, this would now amount to around $220,000. Yet, when the watch was sold at auction in Geneva in 2014, it was able to fetch a price of almost $24 million. This helps to highlight the potential investment value on offer.
If buyers are able to get their hands on a relatively rare Patek Philippe model with low production numbers, keep it in good condition, and retain it along with its papers and original packaging, they may well find that they are able to sell the watch in the future for much more than the initial purchase price. It is not uncommon for valuable Patek Philippe watches to be passed down the generations of a single family, such is their long-term value.
Are Patek Philippe Watches Worth It?
Patek Philippe watches are among the most expensive luxury timepieces on the market, and the reasons for this are numerous. The Patek Philippe brand itself carries a lot of prestige, while the company hand crafts its watches, using the very best materials. Patek Philippe’s history of innovation and limited production numbers also play a crucial role.
The sense of luxury provided by Patek Philippe watches makes them an excellent choice for a statement piece, while the scarcity of these timepieces ensures they offer a sense of exclusivity. Over time, a Patek Philippe watch can prove to be a great investment, as most of the top ten most expensive watches ever sold at auction are Patek Philippe models.
Buyers should take care to ensure they are buying an authentic Patek Philippe watch, as the high value and exclusivity has created a market for fake watches. For this reason, it is important to always buy from trusted watch dealers.
