It's also a relic of the twentieth century.
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This increasing trend toward form over function will, I agree, probably lead to the end of the line for digital watches. They've had their time and their dominance, but to me, they always seem inextricably linked to that time, the 1980s and 1990s. I don't believe they'll have as much relevance for future generations, whereas I feel analog has something more of a timeless quality - the soft clicking of the hands, the fact that it only does one thing and does it well. Nobody's going to text you on a purely analog watch.
I can imagine future watches that cram a lot of miniaturized capability beneath the comfortable, ticking exterior of an analog watch, something comfortable and familiar. ThinkGeek has sold a watch that's also a USB drive for some time now, and there's plenty of opportunity for people to keep going down that path. I don't think Dick Tracy-style video watches will ever really take off, but you don't need to have a video camera on your wrist to be living in the future. Perhaps the watch of the future will be packed full of monitors, keeping an eye on your pulse rate, body temperature, the surrounding temperature, local radioactivity levels...
The watch isn't obsolete. It's just no longer got a monopoly. There will always be people who prefer that form, and there will always be things watches can do. It would be a sad day if the last watchmaker had to close up shop because no one cared about the ticking and the gears.
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