Inside Apple Inc in Switzerland: No Watch yet, but Apple Pay unofficially working, strong demand for

Posted:
in Apple Watch edited June 2015
Switzerland is an affluent country with lots of people who value high quality products and new technology, making it a potential hotspot for Apple Watch--at least once the new product is officially launched in the country, known for its breathtaking mountains and equally breathtaking consumer prices.


Swiss Apps at Brienzersee, east of Interlaken

No Apple Watch for Switzerland, yet

Apple hasn't yet launched its new Watch in Switzerland, where the company operates four retail stores: two in greater Z?rich, one in Basel and one in Geneva. Despite not being among Apple's initial launch countries for Apple Watch, the company's Swiss retail stores are already featuring wall graphics depicting the product, as seen below in the Z?rich store located in the city's upscale Bahnhofstrasse shopping district.

A photo posted by Daniel Eran (@danieleran) on Apr 18, 2015 at 1:35pm PDT




The country has a population of just over 8.1 million people, making its four Apple Stores among the most densely packed for a foreign country. By way of comparison, Apple has no stores in Taiwan, a nation of over 23 million people; just one Shenzhen store serving the 105 million people in China's Guangdong Province and just three in Hong Kong, which has a population of nearly 7.2 million.

However, Hong Kong hosts many millions of tourist shoppers from mainland China and surrounding countries, while the high prices in Switzerland make the country a poor option for shoppers visiting from the surrounding countries of Europe.

Swiss cross-border shopping tends to flow in the opposite direction, with Swiss residents leaving to shop in France, Germany or Italy. That indicates that Apple sees a strong demand for its products from the Swiss themselves in Switzerland, and that demand is likely to also apply to Apple Watch, once it is launched in the country. The Z?rich Apple Store I visited was busy with customers perusing iPads, iPhones and Macs, despite prices significantly higher than the U.S.






Z?rich Apple Store on Bahnhofstrasse


My Swiss friends (or as they say, "Suisse") tended to carry iPhones and it's common to own Apple TV, iPads and Macs. That's a major change from my first visit to Switzerland back in 1999, when Macs were rather rare anywhere in Europe. Every time I've visited since, spottings of Apple products have grown more frequent and are increasingly accompanied by prominent ads for mobile apps, carrier ads for Apple's mobile devices and specialty shops handling Macs and iOS products.

The Swiss are accustomed to paying higher prices for virtually everything, but wages in the country are also relatively high. That contributes to a high quality of life, where an affluent population is comfortable with spending more to buy higher quality goods. Apartments tend to offer premium appliances and fixtures, and residents tend to drive higher end cars, making Apple's luxury-class electronics naturally more attractive than the bargain, no-name, fix-it-yourself type commodity PCs and Android devices that are more common in less affluent countries.

That's certainly not to say that Windows no longer exists in the country: at the train station in Berne, it was clear that the arrival information signs were using Microsoft software because their information was obscured by a dialog box imploring the public to save and close the desktop window manager to avoid the loss of data because the system had run out of memory. Unfortunately, the screens were only displays, leaving the public helpless to speichern or schlie?en anything.


Windows ist kaputt


To its credit, the SBB rail system has also developed iOS apps that handle ticketing and provide information on arrivals, making the PC-based station signage less critical for riders to depend upon.

The popularity of existing Apple products within Switzerland should contribute toward Apple Watch eventually making a splash in the country--even though it is already awash in watches. Nearly 60,000 people are employed by the Swiss watch industry, and the horological industry is worth over $20 billion annually to the Swiss economy. However, much of that business is targeted at exports aimed at luxury buyers in other countries--including major markets in the U.S. and China, where Apple Watch has already launched.

The delayed launch of Apple Watch in Switzerland itself, ostensibly related to a trademark issue, is supposedly going to continue until the end of 2015. Apple hasn't yet detailed when it will open up Watch sales in other countries. However, supplies are currently so constrained that even buyers in the U.S. and other launch countries are cited minimum wait times of two to four weeks for online orders, with some models not being listed as available to ship before July.

However, any Swiss who want to buy an Apple Watch can wait in line at one of the few and far between boutique shops currently stocking the product, including Colette in Paris, Dover Street Market in London, The Corner in Berlin, and--for long distance travel shoppers--Maxfield in Los Angeles or Dover Street Market in Tokyo.

Apple Pay worked for me in Switzerland

Apple also hasn't yet expanded Apple Pay outside the U.S. either. That didn't stop me from successfully making a groceries purchase (at Jelmoli Warenhaus) via NFC using my iPhone 6 Plus in Z?rich on my trip over the last three weeks, however.

NFC terminals are relatively common in the country, which is known for its banking and early adoption of technology. Apple Pay wasn't accepted everywhere I tried to use it, but it did work in a retail store with my phone configured to use an American Citibank account. Had I been using an Apple Watch configured with the same account, it most certainly would have worked as well.

An earlier attempt to use Apple Pay at a Swiss train station ticketing kiosk appeared to work initially but was then declined. However, that machine also refused to accept my U.S. credit card. Citibank hasn't yet introduced the mobile SIM-like "chip-and-pin" cards that Europe has been using for decades; they told me before my trip that they'd start issuing new cards later this summer.


Apple Pay worked at Swiss grocery store, failed at a train station kiosk


This indicates that Apple Pay may roll out globally much faster than anticipated, as the primary issue holding back a broader launch is simply the agreements with banking partners. The core NFC technology Apple selected for its payment system is already broadly implemented, and its already being used in a variety of countries with tap-to-pay cards. Integrating the same ease of payment into iOS products should be quite simple to introduce to the Swiss.

In contrast, the magnetic card swipe emulation technology that Samsung acquired to bolster its own payment system is unlikely to work in many European style card readers, and will certainly not function in places like the Swiss train station where America's archaic swipe cards aren't even recognized (but where NFC elements are available).



Prior to my visit to Switzerland (where I captured the above 240fps Slomo on an iPhone 6 Plus), I visited London to observe the Apple Watch launch in that country. A subsequent article will detail my experiences in Apple's own retail stores, as well as the store within a store at Selfridges.
«13

Comments

  • Reply 1 of 57
    magman1979magman1979 Posts: 1,110member

    It just boggles my mind at how far behind the USA has allowed itself to get, considering that so many other industrialized countries in the world adopted chip & PIN tech DECADES ago!

     

    Up here in Canada, we've had C&P for, I think, more than a decade now, and whilst the cards are no where near as secure as they should be (hence why I carry them in a RFID-shielded wallet), it's still vastly better than the decades-old mag stripe system still in use by the USA.

     

    On a recent trip to Denver, CO by a friend of mine, they made a purchase (the first purchase of the trip) at the bar of the Hilton they stayed at. Guess what? Card got compromised on its first use there by a jacked card reader terminal! ?PAY can't roll out soon enough, even for countries fooled by the supposed security of C&P tech.

     

    One example uncovered by the BBC in the UK, which demonstrates flaws in C&P:

     

     

    There's also this beautiful report on how RFID-equiped CC's in the USA are transmitting their data thru the air with NO ENCRYPTION:

     

     

    Banks claim these technologies are secure, YEAH RIGHT! Apple, roll out ?PAY as fast as you can!!!

  • Reply 2 of 57
    cnocbuicnocbui Posts: 3,613member
    Quote:


     In contrast, the magnetic card swipe emulation technology that Samsung acquired to bolster its own payment system is unlikely to work in many European style card readers, and will certainly not function in places like the Swiss train station where America's archaic swipe cards aren't even recognized (but where NFC elements are available).


     

    No contrast whatsoever.  Samsung Pay also uses NFC, so an S6 would be able to make an NFC contactless payment. The ability to use magstripe terminals is in addition to NFC capability.

  • Reply 3 of 57
    cnocbuicnocbui Posts: 3,613member
    Quote:
    Originally Posted by MagMan1979 View Post

     

    It just boggles my mind at how far behind the USA has allowed itself to get, considering that so many other industrialized countries in the world adopted chip & PIN tech DECADES ago!

     

    Up here in Canada, we've had C&P for, I think, more than a decade now, and whilst the cards are no where near as secure as they should be (hence why I carry them in a RFID-shielded wallet), it's still vastly better than the decades-old mag stripe system still in use by the USA.

     

    On a recent trip to Denver, CO by a friend of mine, they made a purchase (the first purchase of the trip) at the bar of the Hilton they stayed at. Guess what? Card got compromised on its first use there by a jacked card reader terminal! ?PAY can't roll out soon enough, even for countries fooled by the supposed security of C&P tech.

     

    One example uncovered by the BBC in the UK, which demonstrates flaws in C&P:

     

     

    There's also this beautiful report on how RFID-equiped CC's in the USA are transmitting their data thru the air with NO ENCRYPTION:

     

     

    Banks claim these technologies are secure, YEAH RIGHT! Apple, roll out ?PAY as fast as you can!!!


     

    The incidence of Chip and Pin fraud appears to be utterly negligible and required flaws in terminal hardware together with considerable technical sophistication.  Trying to argue Chip and Pin is insecure is nothing less than FUD.  The terminal manufacturers and other related parties appear to have addressed the  issues that allowed the two or three instances of C&P security breach that have been reported.

  • Reply 4 of 57
    magman1979magman1979 Posts: 1,110member
    Quote:

    Originally Posted by cnocbui View Post

     

     

    The incidence of Chip and Pin fraud appears to be utterly negligible and required flaws in terminal hardware together with considerable technical sophistication.  Trying to argue Chip and Pin is insecure is nothing less than FUD.  The terminal manufacturers and other related parties appear to have addressed the  issues that allowed the two or three instances of C&P security breach that have been reported.




    WOW, just WOW... Most ignorant comment I've read in AGES here!!!

     

    Get your head out of the sand, PLEASE!!!

     

    I see you're from Ireland, so perhaps things are different there, but trust me, C&P / RFID fraud occurs far more often than you seem to think in North America.

  • Reply 5 of 57
    sirlance99sirlance99 Posts: 1,120member
    cnocbui wrote: »
    No contrast whatsoever.  Samsung Pay also uses NFC, so an S6 would be able to make an NFC contactless payment. The ability to use magstripe terminals is in addition to NFC capability.

    Exactly! There is no contrast at all as you'd be able to use any NFC terminal just the same.
  • Reply 6 of 57
    thewhitefalconthewhitefalcon Posts: 4,453member

    Lol, DED, when I was at the high speed Camp de Tarragona station in Spain once, the power kept cycling on and off, and every time it came back on (this was in 2011) the station loudspeakers blasted the Windows XP startup sound. I got a kick out of it.

  • Reply 7 of 57
    robin huberrobin huber Posts: 3,234member
    The Swiss willl make jewelry masquerading as computers. Apple is making computers masquerading as jewelry. ????
  • Reply 8 of 57
    robin huberrobin huber Posts: 3,234member
    Hoping to hear from Relic on this topic.
  • Reply 9 of 57
    magman1979magman1979 Posts: 1,110member
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    Lol, DED, when I was at the high speed Camp de Tarragona station in Spain once, the power kept cycling on and off, and every time it came back on (this was in 2011) the station loudspeakers blasted the Windows XP startup sound. I got a kick out of it.




    That's one thing I actually miss about XP was the startup sound!

     

    Notice I said "one thing" ;)

  • Reply 10 of 57
    magman1979magman1979 Posts: 1,110member
    Quote:

    Originally Posted by Robin Huber View Post



    Hoping to hear from Relic on this topic.



    Oh god, I really hope we don't hear from her! She's always over-sensitive about everything...

  • Reply 11 of 57
    cnocbuicnocbui Posts: 3,613member
    Quote:

    Originally Posted by MagMan1979 View Post

     



    WOW, just WOW... Most ignorant comment I've read in AGES here!!!

     

    Get your head out of the sand, PLEASE!!!

     

    I see you're from Ireland, so perhaps things are different there, but trust me, C&P / RFID fraud occurs far more often than you seem to think in North America.




    Since you quoted a FUD BBC piece which was about a 'theoretical' vulnerability, I assumed you were including Europe's Chip and Pin implementation in your assertion of security vulnerability, which would be a mistake as the European implementation appears to be very secure.

     

    I accept that the North American implementation appears to be flawed.

  • Reply 12 of 57
    thewhitefalconthewhitefalcon Posts: 4,453member
    Quote:

    Originally Posted by MagMan1979 View Post

     



    That's one thing I actually miss about XP was the startup sound!

     

    Notice I said "one thing" ;)




    I actually installed XP again last week! I need it for offline stuff though.

  • Reply 13 of 57
    magman1979magman1979 Posts: 1,110member
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     



    I actually installed XP again last week! I need it for offline stuff though.


     

    We have a few XP systems poking around the labs in offline states as command-and-control machines for equipment that never got support past XP and is too expensive to replace...

     

    Sometimes I'll reboot them just to hear the sound LOL!

  • Reply 14 of 57
    cnocbuicnocbui Posts: 3,613member
    Quote:

    Originally Posted by MagMan1979 View Post

     



    WOW, just WOW... Most ignorant comment I've read in AGES here!!!

     

    Get your head out of the sand, PLEASE!!!

     


     

     

    Quote:

    Originally Posted by MagMan1979 View Post

     



    Oh god, I really hope we don't hear from her! She's always over-sensitive about everything...


     

    Kettle, meet Pot.

  • Reply 15 of 57
    macky the mackymacky the macky Posts: 4,765member
    Switzerland is an affluent country with lots of people who value high quality products and new technology, making it a potential hotspot for Apple Watch--at least once the new product is officially launched in the country, known for its breathtaking mountains and equally breathtaking consumer prices.

    I always think of the breathtaking Swiss army knives....
  • Reply 16 of 57
    magman1979magman1979 Posts: 1,110member
    Quote:

    Originally Posted by cnocbui View Post

     

     

     

     

    Kettle, meet Pot.




    She's a staunch supporter of that god forsaken Nokia RT tablet they released, and always professes it to be the best thing since sliced bread, it's a joke!

     

    Don't go calling someone the Pot unless you have some background.

  • Reply 17 of 57
    thewhitefalconthewhitefalcon Posts: 4,453member

    Apple II usually shows up at the mention of the word "pot" so he'll be here shortly.

  • Reply 18 of 57
    entropysentropys Posts: 1,552member
    On ya apple insider. Hope your junket to Switzerland is fully tax deductible!
  • Reply 19 of 57
    lightknightlightknight Posts: 2,312member



    I have to say, the Swiss sure know how to make impressive "Apps".

  • Reply 20 of 57
    lightknightlightknight Posts: 2,312member
    Quote:

    Originally Posted by Entropys View Post



    On ya apple insider. Hope your junket to Switzerland is fully tax deductible!



    I was just thinking that "Prior to my visit to Switzerland (where I captured the above 240fps Slomo on an iPhone 6 Plus), I visited London to observe the Apple Watch launch in that country." felt very much like "tax deduction justification live action".

Sign In or Register to comment.