Despite the growing demand and excitement for the Apple Watch, investors should not write off traditional watchmakers, Cowen analyst Oliver Chen said Monday.
"I think traditional watches will really play a role in the future of smartwatches," Chen told CNBC's "Squawk on the Street." "We think smartwatches will be a $10 billion market over time, but traditional watches, wearables and the fashion component [are] really important. So I think traditional watches can play alongside an Apple Watch as well."
Chen made his remarks after Cowen & Co. released a survey concluding that, while demand and interest for the Apple Watch are growing, the transition from traditional watches to smartwatches may be gradual. It cited such issues as consumers feeling cautious about battery life, pricing, iPhone tethering and water sensitivity. "Traditional watches have staying power as smartwatches [are] currently viewed by most consumers (77% of responses) as complementary," it said.
Nevertheless, Chen said, "as we look into version 2.0 and ahead, those will be solutions that will be solved."