Tag Heuer unveils $1,500 luxury smartwatch

Is Fitbit unfit?

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.

How mobile will transform business in 2016: Forrester

The company said owners of the titanium-based watch will be able to personalize their device "with six different rubber straps." The Connected Watch uses Intel processing power.

Among other features, the device's touchscreen is covered in sapphire crystal and the battery lasts all day by recharging with a simple dock.