Ben Clymer

You don't want the Fossil anymore.

And I think Apple Watch was a big, big player in that.

They are.

Rolex is more vertically integrated than most.

So one can imagine that their margin would be, once you absorb the cost of acquiring and bring everything in house, like you would assume that the margin would be a little bit higher because they're making everything themselves.

Historically and generally speaking, there are very few brands that are as vertically integrated as Rolex.

Weirdly, Seiko would be one, Grand Seiko would be one, Patek would be another.

But most brands are buying effectively everything.

The component, the movement might be an in-house design.

I'm using air quotes here.

In-house design, but they're buying e-bouches, base calibers, and modifying them significantly.

There's margin there.

They have to buy the products.

To this day, or at least back in 2015, Rolex actually did not manufacture their own hands.

I don't know why, but they were buying that from a company.

I forget the name of it.

I think Fiedler.

SA.

So Rolex was buying crystals and hands, but nothing else.

Most brands are buying pretty much everything.