Upscale Swiss watchmaker Tag Heuer has unveiled its first smartwatch called the Connected Watch in New York, its first device running Android Wear.
The smartwatch costs $1,500, the company said Monday.
"Luxury has very rarely been cheap," Tag Heuer CEO Jean-Claude Biver said Tuesday on CNBC's "Squawk on the Street." "It's selling like the Hermes … the price is expensive, but it's still justified, it's in the range."
The unit of LVMH is targeting "the young generation [that's] connected to the future," which Biver says includes young managers, entrepreneurs and students.
After two years, buyers can have the smartwatch transformed and integrated with mechanical Swiss-made technology, which gives it "an incredible advantage" over comparable products like the Apple Watch, Biver said.