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TAG Heuer Meridiist is Dead On Arrival
by Kyle Stults on August 05, 2009

Would you spend more on a TAG Heuer mobile phone than you would on a TAG Heuer Watch?

Didn’t think so.

Going…….down?

So I am reading an email I received a few weeks ago from Tag Heuer which announced the availability of its new Meridiist mobile phone, and I can’t help but thinking, “This thing is dead on arrival – with capital D-O-A!!!” I mean, when a key selling point for a mobile phone is “Did you know that the MERIDIIST is made of stainless steel and unscratchable sapphire crystal, the same materials which are used on TAG Heuer watches?” (a statement from the aforementioned email I received), and the starting suggested retail price is $4,950 (WOW! This is more than most TAG Heuer watches), how can TAG Heuer ever expect to sell enough phones to justify the enormous amount of money it surely sunk into the development of this device?

It seems to me that TAG Heuer seems to have over-assessed the value of its brand on this one. Their positioning and marketing emphasis is all about the phones design features, with seemingly just a few passing thoughts given to the actual functionality of the device. Imagine – for $5+ grand you could have a phone made from the same materials of lesser priced luxury watches but will do nothing more than a phone you could get for free with a 2-year contract with Verizon Wireless (except maybe you look “cooler”)! Ooh – where do I sign up?

You see, marketing hype can only sell so many overpriced mobile phones (just ask Vertu or Bang & Olufsen, or even Motorola or LG). First In Watches thus predicts: TAG Heuer will (quietly) kill the Meridiist program sometime in 2010. Will time prove us right?

Photo from Luxist.

Jason

The Ulysse Nardin cell phone at least has auxiliary power via a rotor. The TAG Heuer doesn’t even have that. Either way, both phones appear to be HUGE failures. But who knows, they both keep this type of thing as secretive as possible – which makes me believe even more that they have failed.

Hublot and TAG love to make products that are totally unrelated to watchmaking. Bikes, skis, phones, glasses, etc…. Terrible. Although, I have heard good things about the TAG glasses.

Kyle S.

Although Hublot does a decent job with some of its “non watch” items, overall I think most of these brands really should stick with what they know best.

http://www.perpetuelle.com James Bond

My Sony Ericsson C905 cost $450 and has more features, including an 8.1 megapixel camera. While these phones are aesthetically pleasing to the eye(especially the UN Chairman), admiring them just for their look is not going to cut it.

I am going to stick with Sony Ericsson.

Kyle S.

Yea James! Functionality is every bit as important as design in mobile phones. I just don’t see what the TAG Meridiist has to offer – especially at a $5k+ price point. It seems to be an exercise in brand vanity.

http://www.madeinnations.com Graham Rankin

This phone was developed with French company Modelabs and according to our research is assembled at their factory in Shanghai, China, along with the Hummer HT2 and MTV 3.4, and others. It would be great to get one of those ‘inside the..’ photos to see what the claimed country of origin is. It’s probably in very small type underneath the SIM card bay!

Kyle S.

Thanks for the info. The phone was indeed developed in collaboration with Modelabs.

http://www.wital.net Po

Well, not really. We have 2011 and the phone is selling good enough. Wait until Basel Fair to get some fresh news from TAG Heuer phone programme…
It’s not about technology in this sector, at all. It is impossible for there manufacturers (even for Vertu) to compete on the technological edge – the product cycle is just too slow. So they really compete against each other in terms of brand value and marketing. And there are enough customers for them out there, even if brand awareness for Vertu (the pioneer of the segment, basically) is very low….
Anyway. Yes, the future has proved you wrong.

http://www.perpetuelle.com Perpetuelle

Ah, Nice try….how about some facts to back your assertions up? Yes TAG did not kill the Meridiist program in 2010 as I predicted, but that is not to say it is a success. Even your unverified information that the phone is “Selling good enough” does not sounds that positive to me — more like the program is just hanging on. How many Meridiist phones were sold in 2010? Show me some verifiable facts that this program is a success.
Kyle
Editor

http://www.wital.net Po

Hi Kyle. Nice try, too! You certainly know, that nobody will give you any exact figures on sales, and especially online. I am not that close to the business anymore (since couple of years now), but I know that Vertu business is moving in 9 digits scale. This niche is valued at more that a billion of dollars in sales – and there is surely a long way to go for all the players still.
However, we are talking business here, and no business would risk its value by selling something, that doesn’t sell enough. Basel Fair will see couple of new launches which means that the market segment is not dead (or, to put it in your terms, is quite a success). It is certainly a niche market, and certainly not the prime business for TAG Heuer, but TAG will not abandon it too quickly (if at all).
Cheers,
Po

http://www.perpetuelle.com Perpetuelle

Yea, I agree that figures will never be disclosed, so the proof of product success will be difficult to discern sans more information. However, I don’t think that a product’s continued availability in the marketplace is a sign that the product is performing as expected. While Vertu and the market segment in general may be strong that does not mean Meridiist is also strong. I still think the Meridiist will prove not be a viable product for TAG Heuer over time….exactly how much time…well, I’ll just have to watch and see.
Anyway…good discussion, thanks for the comments. You got any more news here please come back
Kyle