Can/Will Rolex expand it's production capacity?

[odis84]

Typical estimates of 900k watches annually.

Significant market potential in China and India plus other emerging markets coupled with the downturn in the US economy...

What is the more likely scenario?

Rolex investing in factory/labour expansion to meet current world demand as well as future potential demand, say 1.2-1.3 million units annually.

Or keep production where it stands, continue to raise prices, distribute product to more affluent emerging markets and watch exclusivity grow by simple world supply/demand factors.

I'm thinking the latter but would like to hear the opinions of those who can imagine other possibilities.

[Tools]

I think that they just finished a major factory expansion/construction project..

My guess is that they already adjust their rate of production for each market based on sales and projected trends,,

You know they have a handle on their product when they release new modifications on the Gold models first, the TT next, and lastly the popular SS models..

When the "new" TT GMT II ceramics came out, everybody had to have one and it's all we saw here on the Forum for two years............. until the Stainless model.. Now the TT hardly gets a mention, yet Rolex sold millions of TT models by marketing it first...

[Roxas]

That is a cunning yet obvious strategy. If they release SS first they would probably be able to sell only a little bit of gold and TT model.

[Dr. Robert]

Only if the Rolex Elves Union approves.