Why Rolex Watches Are So Expensive | So Expensive

Rolex watches are some of the most sought-after timepieces in the world. Last year, a vintage Rolex Daytona worn by Paul Newman was sold at auction for $17.8 million. Cara Barrett, editor at Hodinkee, fills us in on why Rolex's are so pricey.

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Following is a transcript of the video:

Cara Barrett: There is a rumor that in order for a Rolex to actually leave the factory or be a Rolex design it has be to recognizable from 20 feet away.

Hi, I'm Cara Barrett, editor at Hodinkee, the leading online watch publication. Rolex is one of the few brands, if not the only brand that has a very specific aesthetic. They are sporty, they are active, they are tool watches that's kind of their main DNA.

In the 50's they came out with the Submariner, the Explorer, the Milgauss, the GMT and they were all watches that were designed and made to be used as tools. And so that's their bread and butter and it still is today. It kind of evolved into a luxury brand later in life which now is what they're known for. So that's kind of the interesting thing about them is they initially were tool watches which have now become luxury. Rolex is kind of one of those brands that sits on the lower end of the spectrum as far as luxury watches are concerned.

The Submariner's $8,000. The entry-level watch at Rolex is $5,000 with the Oyster Perpetual. Their three qualities are self-winding, waterproof and precision. And they really focus on quality. It takes one year to make a Rolex. They go through extensive testing. The accuracy, the chronometer, the timing, it's all about telling the right time, keeping the right time. They also have extensive service work after, so if you ever have a problem with your Rolex, you can take it to them and they'll fix it.

The clasp is opened and closed a thousand times before it leaves so you know that when you get it, it's not gonna break. The whole point of a Rolex is you buy one now, it will last you for 20 years if you take care of it. It will last you for 100 if you really take care of it. That's ultimately why they're so expensive because you're buying something that will last you a lifetime presumably. And something that you can pass down to other generations as well.

In the collectors' world, there's the vintage Rolex market. And there's a whole underground of different nuances and you know there's a GMT with a matte dial, a GMT with a gilt dial and there are all these tiny little details that change and they make a watch more or less valuable.

There's the Paul Newman Daytona which sold for $17.8 million last fall and that's the most expensive Rolex that's ever sold at auction. The Paul Newman Daytona is a really good example where they came out with a Daytona back in the 70s and they put these exotic dials on them and they couldn't sell them. And now they're the most collectible watches on the vintage market.

No one knows how many Rolexes are produced per year, no one knows how many Rolexes are produced per model. But there are specific ones, like the Rainbow Daytona that came out this year, rumored to have X amount made, but very small quantities. You don't ever know exactly what the number is, but you do know that there aren't that many. And they're hard to get.

One of the best things about Rolex is anyone can wear any of them. They're very unisex and I think that that's refreshing 'cause a lot of times brands put a lot of diamonds on watches and kind of brand it as a woman's watch. Whereas Rolex does the same thing, but it's kind of unisex. I wear a lot of men's Rolex. But the ladies Datejust is actually, in two-tone, is actually the most sold Rolex model of all time. Which is a really fun fact.

[juneloh]

When I accidentally fall down and hear something break I'm going to hope it's my arm and not this watch

[happyhour]

I have a Mickey Mouse watch. I've had it since the third grade, and it's had no maintenance other than battery replacements. It's definitely well over 20 years old, and it still works like a charm. My kids are just waiting for me to kick the bucket so they can get their hands on it.

[kxkomii]

“20 years”

My grandmother has a Rolex that’s been in the family for generations and still works fine…

[abdaniftikhar]

My dad got a Seiko 5 automatic watch in 1992 and it's been 31 years and it still works amazing.

[kuokliangchin]

Last you 20 years?! For the price I paid - I’m expecting my Rolex to last for generations

[hamSAH]

i have a seiko watch and someone gifted it to me in 1999 and its 2019.its still ticking no fixes needed for 20 years

[cironar]

Everything she said is true, she did however left out the facts that Rolexs are the MOST counterfeited watches ever.
When you see someone wearing a Rolex, there's a 30% chance they're wearing a FOLEX!

[sparshdaksh]

"watch only tell time, if you want big watch, wear a wall clock around your neck and help others also to see the time"
- A very Wise man

[saifalameri]

Recognizable from 20 feet away???
Thats a new level of flexing

[dydy]

Thats not the reason why rolex is THAT expensive. Its the brand, the hype, their distribution, the marketing, etc

[lnd]

I’ve had a Casio watch for a decade it’s been all through Asia and the Middle East and it still works like it’s brand new.

[timothyreeves]

My first Rolex is 34 plus years old and still seems brand new. Great watches

[shino]

Rolex is so expensive because humans are easily manipulated by marketing and social status.
A pen can last 20 years plus as long as it's maintained and refilled with ink, this doesn't mean it should costs thousands.

[joshgabrielll]

Rolex is expensive

Me: looking at my G-Shock that I have dropped at least 100 times living over 10 years.

[miguelperaza]

MY father grew up with Rolex . The Daytona lacked a 24 hour dial, that most car drivers preferred, the one that had a dial purposely for the 24 hours of Le Man's was the Dan Henry, a super elegant sports watch, maybe more elegant than the Daytona. The Pepsi Gmt II was the one I kept, for comfort, not bulky but inconveniently sharp at the end of luggs, but later after 2 years it needed a rotor and the luminosity was gone, done with ! it never glowed ever in the dark, and a high percentage of them get internal corrosion and are ridiculously without sense, more expensive . the other I loved was a Seiko skx 007 which had a bright glow and never needed repair or overhaul after 17 years ! So to my opinion Rolex is super overpriced for its funtionality.

[williamwade]

I don’t know if it’s depressing or refreshing that there’s so many people out there like me who think the price of these Rolex watches is insane.

[bunnyking]

"Rolex watches are unisex, so I wear a lot of men Rolex watches" ...wtf mate

[CarlosCMTF]

"Why Rolex watches are so expensive?"
Patek Philippe: Am I a joke to you?

[alocassia]

If you test the clasp a thousand times before it even leaves the factory, wouldn't that really reduce it's life span even before it's sold??

[kingclan]

I am not an expert in luxury brands, but they do really put time in the quality. My dad still wear one today which he bought in the 70s when it was not that luxury.