'Apple Watch Threat To Traditional Watchmakers Is Largely Overstated,' Says Jefferies

In a report published Tuesday, Jefferies analyst Randal Konik argued that

Apple Watch is well-designed, but the threat to traditional watchmakers such as

is "largely overstated." Konik noted a proprietary smartwatch survey that found "minimal" smartwatch penetration of approximately 2 percent and "low demand" going forward. The analyst added that 70 percent of respondents deemed a smartwatch to be "unnecessary" while nearly half of the respondents said that a smartwatch is too expensive. The inconvenience of being forced to charge a smartwatch regularly was also cited as a reason not to purchase a device. "These concerns were validated by new Apple Watch information, which includes higher than expected prices and only one day's worth of battery life," Konik wrote. "Additionally, the Watch must be managed through its accompanying iPhone." Finally, Konik pointed out that Fossil Group watches typically range from $100 to $250, which is "meaningfully" below Apple Watch prices. The company has also introduced a holiday 2015 time frame for debuting its own wearable technology product that charges wirelessly and can be used with any device. Shares of Apple are Hold rated with a $124 price target. Shares of Fossil Group are Buy rated with a $130 price target.