[FogCityM3]

On certain models, the swiss watch makers limit supply and high demand for certain models keeps prices up (and gives the watch makers pricing power). Look at the older Rolex Daytonas...had Zenith movement but are still very valuable and retained their value even right after the Daytonas were revised and switched to in-house Rolex movement.

Also, they don't advertise it, but there is a lot of R&D sharing and Joint Ventures among the Swiss watchmakers. Doesn't make sense to do everything 100% original and have full replication of every aspect of watches...ie makes economic sense for them to do so.

Finally, the quality is also in the steel/alloys used for the watches. For example part of the clasp (the inner polished part, don't know what it's called) on Rolexes are basically unbendable and that alloy is a closely guarded secret. Some aspects of watches are unique and collectors seek things that differentiate themselves looks, features, or durability wise. It's very difficult to make an automatic watch that combines accuracy and durability, time elapsed between windings, while maintaining long service intervals.