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Watch: this space? Time for phones!

Your sales are down. You make wrist watches. What's the cause? You might be surprised...

According to Fossil it's "weaker than expected sales" - well, duh! - the question is: "Why are sales weaker than expected?" And, apparently, the answer to check out is: "Because of mobile phones."

To quote JCK Magazine, "The stock of Fossil Inc., a leading maker of fashion watches, dropped 27% . . . after weaker-than-expected domestic and foreign sales forced it to downsize sales and earnings forecast for its fourth quarter and the year."

Naturally Fossil and others, expect the sales to go up in 2006. They may be heading for another "weaker than expected" announcement in 2007.

At 3GSM, a quick poll of delegates showed that indeed, a substantial minority - especially of the younger delegates - were not wearing watches. Ask them the time, and they pull their mobile phone out, and check the display.

The "blingbling" brigade will, no doubt, carry on wearing Rolex and fake Rolex watches; but the need for an extra electronic device isn't clear to street-wise citizens.

One insider consultant working with a phone maker told NewsWireless: "We predict the slowdown in wrist watch sales will continue. The last five quarters have been bad; the next five will be worse."

  Tags: 3GSM, wrist-watch