Watches Have Become More Expensive. But Have They Become Better? A Look Back at 20 Years of Watchmaking

Twenty years ago, $150 could buy you a distinctive wristwatch. Today, some watches cost twice as much, while others have barely changed in price. So what exactly are we paying for?

The Watch Industry Has Changed. So Have the Prices.

Think back to 2006.

The iPhone hadn't been introduced yet. Instagram didn't exist. Smartwatches were far from becoming an everyday accessory, and mechanical watches were enjoying a renewed appreciation among enthusiasts.

Back then, spending $150 to $300 on a wristwatch could get you a respectable timepiece with a Japanese movement, a stainless steel case, and a design that stood out.

Fast-forward to 2026, and the watch industry looks very different.

A Rolex that once cost around $5,000 can now cost well over $10,000 at retail. Luxury watches have increasingly become status symbols, while affordable brands compete to offer more features for less money.

But here's the question nobody seems to ask often enough:

Have watches actually become better, or have we simply become accustomed to paying more?

How Much Have Watch Prices Really Increased?

Let's start with inflation.

According to the US Bureau of Labor Statistics, consumer prices increased by approximately 66% between 2006 and August 2026.

In practical terms, a watch priced at $150 in 2006 would need to cost around $249 today simply to maintain the same purchasing power.

Price in 2006	Equivalent in 2026
$100	$166
$150	$249
$200	$332
$300	$498
$500	$831

But the luxury watch market has followed a different path.

Over roughly the same period, the retail prices of several iconic Swiss watches more than doubled, outpacing general consumer inflation.

And yet, the basic purpose of these watches hasn't changed. They still tell the time, often using mechanical principles that have existed for generations.

So where is the extra money going?

The Luxury Watch Is No Longer Just a Watch

Twenty years ago, luxury watches were already expensive. But today, many high-end models occupy an entirely different position in the consumer market.

They're symbols of achievement, collectible objects, expressions of heritage, and, in some cases, speculative assets.

The watch itself is only part of the equation.

You're also paying for the name on the dial, the manufacturer's history, worldwide recognition, marketing, exclusivity, and the experience of owning something prestigious.

There is nothing inherently wrong with that.

A beautifully manufactured mechanical watch can represent extraordinary craftsmanship.

But an expensive watch and a well-made watch are not necessarily the same thing.

Price can tell you how a watch is positioned. It doesn't always tell you how well it performs.

The Surprising Truth: Affordable Watches Have Improved

While luxury prices have climbed, the affordable watch segment has undergone its own transformation.

Today, buyers can find features once associated mainly with more expensive watches at considerably lower price points.

Consider what is widely available in modern affordable watches:

• Sapphire crystals with excellent scratch resistance.

• Reliable Japanese quartz and automatic movements.

• Stainless steel cases with improved finishing.

• Screw-down crowns and practical water resistance.

• More sophisticated dial construction, including layered and textured designs.

Manufacturing technology, global sourcing, and greater competition have helped make many of these features more accessible.

Of course, not every modern affordable watch is better than an older one. Quality control, long-term serviceability, finishing, and durability still vary considerably.

But there's no denying that today's buyer has an impressive range of choices.

A $200 watch in 2026 can offer a specification sheet that would have been attractive on a considerably more expensive watch two decades ago.

A Personal Perspective: Twenty Years of Chotovelli

In 2006, Chotovelli & Figli introduced its first collections of aviation-inspired wristwatches.

Our early models retailed for approximately $150.

The idea wasn't to create another luxury status symbol. It was to offer something distinctive: oversized cases, aviation-inspired dials, unconventional details, and a strong visual identity.

Twenty years later, that original $150 is equivalent to approximately $249 when adjusted for US inflation.

Looking back, that number makes us reflect on how much the watch market has changed.

We have seen trends come and go.

Large watches became fashionable, smaller classic cases returned to the spotlight, mechanical movements gained renewed popularity, and quartz watches continued to prove their practicality.

But one thing hasn't changed.

A good watch should make you want to wear it.

 

Whether it costs $150 or $15,000, the connection between a person and a watch is something that cannot be measured entirely by price.

What Actually Makes a Watch Better?

Let's forget the price tag for a moment.

Imagine two watches sitting next to each other.

One costs $300. The other costs $3,000.

Both have stainless steel cases, sapphire crystals, reliable movements, and attractive dials.

Is the expensive one necessarily ten times better?

Probably not, at least not in terms of basic timekeeping.

The difference may lie in finer finishing, movement construction, materials, manufacturing methods, serviceability, exclusivity, or simply brand recognition.

And some of those differences are genuinely worth paying for.

But what makes a watch better depends on what the owner values.

For one collector, it's the engineering of a beautifully finished mechanical movement.

For another, it's accuracy and reliability.

For someone else, it's an unusual dial, a perfectly proportioned case, or a watch that reminds them of a particular moment in life.

There is no universal definition of the perfect watch.

Are We Paying More for Less?

Not necessarily.

In certain areas, modern watches genuinely deliver better technology, materials, and manufacturing consistency.

In other areas, prices have increased much faster than the improvements visible to the customer.

And sometimes a price increase has very little to do with the watch itself.

Luxury branding, limited availability, and market positioning can all influence what someone is willing to pay.

That is why comparing watches solely by price is becoming increasingly difficult.

A $500 watch from a small independent brand might offer more appealing specifications than a $1,500 watch from an established fashion label.

But the reverse can also be true when craftsmanship, quality control, and after-sales support are taken into account.

The Next 20 Years: Where Do Watch Prices Go From Here?

Will mechanical watches continue to become more expensive?

Will luxury brands push further into exclusivity?

And will affordable microbrands continue challenging traditional manufacturers?

We suspect the market will increasingly move in two directions.

At one end, watches will become even more exclusive, collectible, and expensive.

At the other, independent brands will continue competing through distinctive design, thoughtful specifications, and accessible pricing.

Final Thoughts: The Best Watch Isn't Always the Most Expensive

After 20 years in the watch industry, one lesson stands out.

A watch's value isn't determined solely by its retail price.

A luxury watch can be a wonderful object of craftsmanship, just as an affordable watch can bring years of enjoyment.

The important question isn't simply how much a watch costs.

It's whether the watch delivers something worth owning.

Perhaps that's the biggest lesson from two decades of changing watch prices:

The price of a watch tells you what it costs. The experience of wearing it tells you what it's worth.

And now we're curious.

Do you believe watches are genuinely better today than they were 20 years ago, or are we just paying more for the name on the dial?

Explore our aviation-inspired watch collections at Chotovelli & Figli.

Data note: Inflation calculations use US CPI-U figures for the 2006 annual average and August 2026. They illustrate general purchasing power, not watch-specific inflation. Historical model prices and specifications can vary by reference and market.