The quartz crisis (Switzerland) or quartz revolution (United States, Japan, and other countries) was the upheaval in the watchmaking industry caused by the advent of quartz watches in the 1970s and 1980s, that largely replaced mechanical watches around the world. It caused a significant decline of the Swiss watchmaking industry, which chose to remain focused on traditional mechanical watches, while the majority of the world's watch production shifted to Japanese companies such as Seiko, Citizen and Casio which embraced the new electronic technology. The quartz crisis took place amid the postwar global Digital Revolution (or "Third Industrial Revolution"). The crisis started with the Astron, the world's first quartz watch, which was introduced by Seiko in December 1969. The key advances included replacing the mechanical or electromechanical movement with a quartz clock movement as well as replacing analog displays with digital displays such as LED displays and later liquid-crystal displays (LCDs). In general, quartz timepieces are much more accurate than mechanical timepieces, in addition to having a generally lower cost and therefore sales price.
History
Before the crisis
During World War II, Swiss neutrality permitted the watch industry to continue making consumer time-keeping apparatus, while the major nations of the world shifted timing apparatus production to timing devices for military ordnance. As a result, the Swiss watch industry enjoyed an effective monopoly. The industry prospered in the absence of any real competition. Thus, prior to the 1970s, the Swiss watch industry had 50% of the world watch market. In the early 1950s a joint venture between the Elgin Watch Company in the United States and Lip of France to produce an electromechanical watch – one powered by a small battery rather than an unwinding spring – laid the groundwork for the quartz watch. Although the Lip-Elgin enterprise produced only prototypes, in 1957 the first battery-driven watch was in production, the American-made Hamilton 500. In 1954, Swiss engineer Max Hetzel developed an electronic wristwatch that used an electrically charged tuning fork powered by a 1.35 volt battery. The tuning fork resonated at precisely 360 Hz and it powered the hands of the watch through an electromechanical gear train. This watch was called the Accutron and was marketed by Bulova, starting in 1960. Although Bulova did not have the first battery-powered wristwatch, the Accutron was a powerful catalyst, as by that time the Swiss watch-manufacturing industry was a mature industry with a centuries-old global market and deeply entrenched patterns of manufacturing, marketing, and sales.
Beginning of the revolution
In the late 1950s and early 1960s, both Seiko and a consortium of Switzerland's top watch firms, including Patek Philippe, Piaget, and Omega, fiercely competed to develop the first quartz wristwatch. In 1962, the Centre Electronique Horloger (CEH), consisting of around 20 Swiss watch manufacturers, was established in Neuchâtel to develop a Swiss-made quartz wristwatch, while simultaneously in Japan, Seiko was also working on an electric watch and developing quartz technology. One of the first successes was a portable quartz clock called the Seiko Crystal Chronometer QC-951. This portable clock was used as a backup timer for marathon events in the 1964 Summer Olympics in Tokyo. In 1966, prototypes of the world's first quartz pocket watch were unveiled by Seiko and Longines in the Neuchâtel Observatory's 1966 competition. In 1967, both the CEH and Seiko presented prototypes of quartz wristwatches to the Neuchâtel Observatory competition. On 25 December 1969, Seiko unveiled the Astron, the world's first quartz watch, which marked the beginning of the quartz revolution. The first Swiss quartz analog watch – the Ebauches SA Beta 21 – arrived at the 1970 Basel Fair. The Beta 21 was released by numerous manufacturers including the Omega Electroquartz. On 6 May 1970, Hamilton introduced the Pulsar – the world's first electronic digital watch. In 1971 Girard-Perregaux introduced the Caliber 350, with an advertised accuracy within about 0.164 seconds per day, which had a quartz oscillator with a frequency of 32,768 Hz, which was faster than previous quartz watch movements and has since become the oscillation frequency used by most quartz clocks. Seiko made key patents publicly available to facilitate the widespread adoption of quartz technology, establishing it as the industry standard.
The rise of quartz
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