How Many Watches Does Rolex Produce and What Are Its Revenues?

Rolex operates as a privately held entity, which makes it challenging to access concrete data on its internal operations. However, various publicly available sources provide enough information to offer a reasonable estimate of Rolex’s annual watch production and revenue.

How many watches does Rolex make each year? How many units of each model are produced? What is the revenue generated per model?

Disclaimer: These figures are estimates, based on publicly available data. The true numbers are not disclosed by Rolex, and I have no insider information beyond what is available online. Nevertheless, this analysis uses reliable sources to model potential answers to these questions.

Background and Methodology
For this analysis, I will focus on Rolex’s fiscal year 2021, as it provides more comprehensive data on revenue and watch production than the 2022 figures. In 2021, Rolex is estimated to have produced approximately 1.05 million watches, generating $8.807 billion in revenue. To put this in context, Cartier, the second-largest luxury watch brand, reported revenue of $2.615 billion during the same period.

Rolex’s commitment to quality is evident in its fully in-house manufacturing process. From movements to materials like Oystersteel and Parachrom hairsprings, the company goes above and beyond industry standards. Producing over a million watches annually is impressive, especially when demand for Rolex watches far outstrips supply, making it a challenge to buy one from an Authorized Dealer (AD).

Rolex is addressing this demand with a $1 billion manufacturing facility, set to be completed by 2029. While details on its purpose are still unclear, the hope is that this will help balance supply and demand, reducing the role of the grey market.

Proportions of Production by Model
To estimate how Rolex’s total production is divided among different models, I utilized data from Chrono24, a leading global watch marketplace. This allowed me to analyze the distribution of clone Rolex watches produced in 2021. The data shows that the Classic collection, which includes models like the Datejust, makes up 54.6% of total production, while the Professional collection, which includes the Submariner, Daytona, and GMT-Master, accounts for 45.4%.

At first glance, it might be surprising that the Classic collection produces a larger share, given the greater media presence and higher demand for Professional models. However, the Classic collection contains more references per model. For example, the Datejust offers a wide variety of sizes, dials, bezels, and bracelet options, leading to higher production volumes. The Day-Date and Oyster Perpetual collections further bolster the Classic side.

Within the Professional collection, the fake Rolex Daytona leads production, followed by the Submariner and GMT-Master. The Daytona’s broad range of case materials, dial designs, and gem-set options contribute to its high production proportion. On the other hand, models like the Air-King and Milgauss are produced in smaller numbers due to their niche appeal. Interestingly, the Rolex Cellini, a dress watch, is produced in the smallest quantities, reflecting Rolex’s lesser focus on this segment.

Estimating Revenue by Model: Method 1
In the first method, we assume that Rolex’s total revenue of $8.807 billion is accurate. By applying the production proportions from Chrono24 to this total, we can estimate the revenue generated by each model.

The Datejust emerges as the clear leader, generating $2.372 billion in revenue. This puts it just below Cartier in terms of watch industry revenues. The Datejust’s success can be attributed to its versatility, offering a wide range of configurations to suit different tastes and budgets.

Other models generating significant revenue include the Daytona, Oyster Perpetual, Day-Date, and Submariner, each contributing over $800 million annually. These models, especially the Daytona, benefit from high demand and strong secondary market prices, further driving revenue.

However, applying these proportions directly to the production numbers leads to discrepancies in the estimated number of replica watches produced. To reconcile this, we adjust production figures to match the revenue generated at wholesale prices, resulting in a revised total production figure of around 1.24 million watches. This adjustment shifts production slightly towards the Classic collection, with an estimated 200,000 more Datejust and Oyster Perpetual models produced than originally suggested.

Estimating Revenue by Model: Method 2
In the second approach, we assume that Rolex produces 1.05 million watches annually. Using the same proportions, we estimate production numbers for each model. The results show that the Classic collection, particularly the Datejust, dominates production, with an estimated 575,000 Classic models produced. Of these, nearly half are Datejust models.

The Professional collection, in contrast, sees fewer units produced overall. For example, the Submariner is estimated to have 98,000 units produced annually, with 60,000 of these being stainless steel models. Similarly, the GMT-Master accounts for around 88,500 units, with the majority being stainless steel references.

Under this method, total revenue is estimated to reach $10.75 billion, $2 billion higher than the figure reported by Statista. This discrepancy is primarily driven by higher wholesale prices for Professional models like the replica Rolex Daytona and Yacht-Master, which generates significant revenue despite their relatively lower production numbers.

Watches per Authorized Dealer
Based on these production estimates, we can calculate how many watches each Authorized Dealer (AD) would receive annually. According to 2022 data, there are 1,816 Rolex ADs worldwide.

For Method 1, with an estimated 1.24 million watches produced, each AD would receive an average of 244 Professional models and nearly double that number for Classic models. However, the distribution is skewed. Highly coveted models like the Daytona are in limited supply, with each AD receiving only 33 Daytonas per year, and some dealers receiving just one platinum Daytona annually.

In contrast, the Submariner, despite its popularity, is more widely distributed across ADs due to its relatively lower wholesale price. This results in each AD receiving a larger share of Submariners and fewer Daytonas or other high-end Professional models.

Method 2, with a total production of 1.05 million watches, provides slightly different figures but reinforces the idea that ADs receive a relatively small number of watches each year, especially the rarer models. For example, the Daytona’s share increases slightly, but ADs still receive fewer of these highly sought-after pieces.

Rolex remains an enigmatic giant in the luxury watch industry. With its annual production of over a million watches and a revenue of up to $10.75 billion, the brand continues to captivate collectors and enthusiasts worldwide. The company’s opaque nature makes it impossible to know the exact figures, but by analyzing publicly available data, we can get a closer look at the proportions of each model produced and their estimated revenues. Whether these figures are entirely accurate or not, one thing is clear: Rolex watches are in high demand, and their rarity only adds to their appeal.