How many watches does Rolex produce per year

The Swiss watch brand Rolex, founded in 1905 by Hans Wilsdorf, is internationally synonymous with luxury watches of the finest quality and highest precision. We are undoubtedly dealing with one of the watch brands that enjoys an impeccable reputation worldwide and whose watches collectors practically lick their fingers over. After all, a Rolex is a top-class status symbol, offers outstanding value retention, and is guaranteed to attract all eyes on the wrist. However, anyone who thinks that all you need is the necessary budget to own such a luxury watch in a coveted reference is seriously mistaken. After all, purchasing such a watch usually involves long waiting times. Why? Quite simply: demand for these fine watches far exceeds supply. In this article, we take a closer look at the annual production volume of the Swiss brand Rolex and examine the impact of these limited quantities on the market.

The curiosity about the annual production volume of Rolex

Considering the immense demand for Rolex watches and observing how they change hands on the secondary market for many times their list price , the question naturally arises: How many watches does Rolex produce per year? A question that every dedicated watch collector, investor, and fan of the brand has probably pondered at some point—and unfortunately, there is no 100% reliable answer.

No other brand's production is surrounded by as many myths, speculations, and mysteries as that of the Rolex company. There are numerous online forums and platforms where this very topic is discussed thread after thread. And if two watch lovers meet in person, chances are they'll end up talking about this very topic sooner or later. Logically, anyone who wants a specific Rolex watch would give a lot to know exactly how much patience they'd need to finally hold the model of their choice in their hands.

As a result, numerous retailers whose product range includes Rolex watches are constantly receiving customer inquiries asking for figures on Rolex production volumes – inquiries that even the most reputable dealers cannot answer precisely.

The secrecy of Rolex

The reason for the speculation about the annual production figures for Rolex's collections is obvious: The Swiss luxury watch company keeps this information secret. Anyone who doesn't receive a satisfactory answer from their retailer and then turns directly to Rolex should prepare for disappointment.

In contrast to production volumes, little is known about the production facilities. Rolex's headquarters are located in Geneva, where the development and assembly of its watches take place. Dials and Cerachrom components are manufactured in Chêne-Bourg, and a large portion of the other components are produced in the factory in Plan-les-Ouates. And the movements, admired around the world? These are manufactured in Biel, also in Switzerland. In the future, the Rolex factories will be supplemented by a completely new facility, currently under construction in Bulle, Canton Fribourg.

Estimates of Rolex's annual production

As already mentioned, Rolex - unlike many other watch manufacturers in the luxury segment - does not publish figures on annual production, and the chronometer testing institute COSC also does not reveal how many models leave the Rolex factory per year.

Nevertheless, there are estimates that can be found in the report "State of the Industry – Swiss Watchmaking in 2022" by the US company Morgan Stanley. As an investment banking firm, Morgan Stanley publishes a respected report every year that addresses the current state of the watch industry. The 2022 edition includes a rough estimate of Rolex's annual production, which is estimated at 1.05 million.

To put this number into perspective, let's take a look at how many watches other brands bring to market each year. The Swiss manufacturer Patek Philippe produces approximately 68,000 watches annually, Breitling produces around 170,000, and Omega manages a whopping 570,000.

However, there are also brands whose production figures exceed those of Rolex. For example, Longines with 1.8 million and Swatch with an incredible 3.2 million timepieces that roll off the production line annually. Nevertheless, Rolex is clearly one of the watch brands with the highest production figures, which further underlines the brand's immense popularity. After all, despite these impressive figures, demand far exceeds supply.

The impact of production volume on Rolex

Before we take a detailed look at what the production volume means for customers, or for prospective customers, let's look at the company itself. How does the estimated production volume of 1.05 million affect the Swiss company?

One thing is clear: No matter how many watches Rolex produces, it's nowhere near enough to even come close to saturating the market. And this, of course, has significant advantages for the brand. The astronomically high demand ensures consistently excellent sales figures and virtually guarantees that even newly released models and collections will be sold out in an instant. Rolex has been generating gigantic sales for years and decades and boasts a market share of over 28%. This puts the watch brand clearly in the lead, followed by Omega, which has a market share of just under 8%.

How Rolex manages the high demand for its watches

Rolex certainly doesn't have to worry about not selling enough of its production watches or dealing with declining demand. Instead, the company must focus intensively on a completely different issue, one at the other end of the "problem scale": managing the immense demand.

Which brings us to another question that's on the minds of many a watch collector: How is it decided who gets a Rolex and who misses out? And what does an average consumer have to do to get their hands on such an exclusive wristwatch?

The usual route to a Rolex is through a specialty retailer. These specialty retailers are equipped with a few Rolex watches each year and are responsible for selling them to select customers at the listed price. Especially with rare, highly popular models—such as the Rolex Daytona —the retailer is likely to be faced with a small contingent of watches and a long list of prospective buyers. They will therefore likely target their regular customers first. Whatever remains may then be offered to the lucky new customer.

It's important to note that simply being placed on the waiting list doesn't necessarily mean that you'll one day have the chance to invest in a Rolex. The waiting list is not the same as the official waiting list. Often, the waiting lists contain far more people than can be supplied with the model of their choice in decades. A certain degree of commitment is only established when the dealer notifies you of final inclusion on the actual waiting list.

The exclusivity and market value of Rolex watches

To explain how exclusivity affects the market value of Rolex watches, we must first examine the difference between the list price and the prices on the secondary market. The list price refers to the price that dealers charge for the models. On the secondary market, however, demand determines the price. There, timepieces are offered by private individuals and investors, with prices for sought-after models typically far exceeding the list price.

Because Rolex cannot satisfy the high demand for popular models with its annual production volume, purchasing on the secondary market is often the quickest and easiest way to acquire a watch from the Swiss brand. Often, wealthy watch enthusiasts are happy to accept the sometimes exorbitant prices to avoid the long wait. Accordingly, the market value of a Rolex watch can be several times higher than its list price immediately after purchase from a retailer. Such models are therefore ideal investments, as they promise extremely high value retention and are therefore considered a relatively safe investment.

How the availability of Rolex watches affects the collector market

Collectors are typically particularly interested in models that are produced in particularly small numbers and can therefore only be acquired through a dealer with a great deal of luck and a long waiting period. After all, it is precisely these watches that immensely increase the value of a collection and make the hearts of watch enthusiasts beat faster.

In concrete terms, this means that for a Rolex Daytona reference 116500LN, for example, you can expect to wait about 20 years. A GMT-Master II "Pepsi" with a red and blue bezel will take about the same amount of time, while the "Batman" version is considerably easier to acquire, with a mere seven years. Nevertheless, if you long for nothing more than to be able to call the respective watch your own, seven years is still a time that can feel like half an eternity.

In their search for their favorite Rolex, watch enthusiasts understandably often turn to the secondary market. There, the waiting times are eliminated, thus sparing the patience of prospective buyers. However, the exact opposite is true for their wallets: These are burdened by hefty prices. If you want to acquire a coveted Rolex in good condition, the investment is comparatively large, and the sums involved far exceed the purely objective value of the models.

Most watch collectors would certainly agree with the following: Regardless of whether you bought it from a dealer or on the secondary market, the effort will have paid off when you finally have the longed-for watch on your wrist.

Collectors and their perspective on Rolex

Now, one might think that die-hard collectors would be quite annoyed, given the low production volumes and the prices demanded on the secondary market. However, this is rarely the case. Many people who are particularly interested in high-priced watches more than appreciate the value of these precious pieces. And they are fully aware that this value is largely determined by high demand versus low supply.

If Rolex watches were produced in such abundance that anyone could buy one immediately and without any detours, these models would be of little interest to most collectors. The exclusivity of the Swiss brand, among several other factors, ultimately leads to its widespread preference over other, more productive watch brands. Product scarcity is certainly a serious factor in understanding the fascination that Rolex exerts on watch enthusiasts.

The same applies to investors: If you're purchasing a Rolex as an investment, it certainly makes sense to choose sought-after models. While many watches from other watch brands barely increase in value over the years or even lose value, with an exclusive Rolex model you can be relatively certain that the price development will be in your favor.

However, there is something that anyone looking to make money from a Rolex should be aware of: models purchased through dealers should not be sold immediately for profit after purchase. The reason for this is a kind of unwritten rule that is sacred to most dealers. It states that a newly purchased Rolex may not be resold immediately after purchase for many times the dealer price.

If you don't comply and are caught in the act, you can expect to find your name immediately on a "blacklist." This, in turn, means that you shouldn't be surprised if you're not offered a watch by that dealer for years or decades to come. Incidentally, this practice isn't just common in connection with Rolex, but is also practiced when selling watches from other brands.

So, keep in mind: If you already know during your search that you want to sell the watch quickly, the only option is to purchase it on the secondary market. Otherwise, you'll have to accept the fact that you'll be seriously unpopular with your trusted dealer for a very long time.

Rolex's strategy and growth prospects

Rolex's strategy is as simple as it is ingenious: The manufacturer increases its production output only slightly per year, while demand for its models increases dramatically year after year. This ensures that demand consistently far exceeds supply, optimally maintaining the brand's image as a highly exclusive provider. At the same time, this continually sets the stage for increasing market value, and Rolex can be sure of generating record sales every year.

Even though the manufacturer itself remains tight-lipped about production volume, it's unlikely that any major leaps in production volume will occur any time soon. Rather, there's every indication that Rolex will continue to increase the number of timepieces produced annually only in small increments. Instead of producing a massive number of watches all at once, Rolex will likely continue to focus on a relatively small contingent in the future, thus virtually eliminating the possibility of collectors and investors losing interest in the legendary models.

Conclusion: The secrets of Rolex's production volume

Whether it's the Rolex Daytona or the GMT-Master II , the Geneva-based watch giant's product range includes numerous iconic timepieces that many a watch fan would gladly give their last shirt for. These incomparably popular watches have been at the top of many collectors' and investors' wish lists for many years, and there's no sign of that changing anytime soon.

The watch brand founded by Hans Wilsdorf, whose sales, market share, and global popularity are hard to beat, is extremely secretive about its production volume. Were it not for the Morgan Stanley report, almost nothing would be known about it. However, we do know that Rolex produces approximately 1.05 million timepieces annually. A number that doesn't even come close to what the market is crying out for—and that may be one of the most important ingredients in the "Rolex recipe for success."