In case you missed it, Acquired just dropped a five-hour deep dive into the history of Rolex. If that sounds like a lot (because it is), don’t worry—I listened so you don’t have to.

For those unfamiliar with the Acquired podcast, hosts Ben Gilbert and David Rosenthal—two ex-VCs—break down the world’s greatest companies in long-form, conversational episodes. A friend of mine—who’s deep into the finance/VC world—swears by this show. And after listening, I get why.

Since nobody has time to sit through a five-hour episode (except me, apparently), I pulled out the highlights—plus some fun insights into what makes Rolex the powerhouse it is today.

The Rolex Story: How a Watchmaker Became a Global Icon

Rolex isn’t just a watch brand—it’s a category-defining company that sits at the intersection of engineering, branding, and sheer business mastery. While many recognize it as the go-to status symbol of success, the real story behind its dominance is even more fascinating.

From Precision Timekeeping to Cultural Phenomenon

Founded by Hans Wilsdorf, Rolex started as a brand focused on accuracy and durability. It was one of the first companies to popularize the wristwatch at a time when pocket watches dominated. But beyond its technical achievements—like the first waterproof case and automatic winding movement—Rolex did something more important: it embedded itself into the culture of achievement. Whether it was on the wrist of deep-sea divers, race car drivers, or world leaders, Rolex became synonymous with excellence.

The Birth of the Rolex Name: Branding Before It Was Cool

In the early 1900s, most wristwatches didn’t carry a brand name—only the jeweler’s. Hans Wilsdorf wanted to change that. Inspired by Kodak, he admired how George Eastman created a short, punchy name that was easy to say in any language. Wilsdorf experimented with hundreds of letter combinations before landing on “Rolex,” a name he felt mimicked the smooth sound of a watch being wound.

By 1908, Rolex was officially registered in Switzerland, and Wilsdorf made a bold move—he put Rolex on the dial. While other brands relied on retailers to market their watches, Rolex made its name the focal point. That decision helped turn Rolex into one of the most recognizable luxury brands in history.

Surviving the Quartz Crisis

The 1970s brought what the Swiss watch industry calls the “Quartz Crisis”—a shift from mechanical watches to battery-powered quartz movements that were cheaper, more accurate, and easier to produce. Many legacy brands scrambled to keep up, pumping out quartz watches and ultimately diluting their brand identity. Rolex, on the other hand, played the long game. They experimented with quartz (Oysterquartz models) but never fully committed, betting instead that their expertise in mechanical movements and branding would outlast the trend. They were right.

The Power of Scarcity & Brand Control

If you’ve ever tried to buy a Rolex at retail, you know the frustration—long waitlists and limited availability. That’s by design. Rolex doesn’t just sell watches; they manage demand masterfully. Unlike other brands that adjust pricing based on demand shifts, Rolex maintains a steady, deliberate pace. They increase prices gradually, tightly control supply, and ensure their watches retain value—usually appreciating even after purchase, which most of you reading this already know.

Why Rolex is More Like Porsche than Patek Philippe

Despite being in the luxury space, Rolex operates differently from brands like Patek Philippe or Audemars Piguet. Those brands focus on extreme craftsmanship, small production numbers, and ultra-high price points. Rolex, on the other hand, is like Porsche—it balances engineering, reliability, and prestige at a scale that no other luxury watch brand can match. With an estimated 1.2 million watches produced annually, Rolex dominates 30% of the Swiss watch industry’s revenue.

The Paul Newman Daytona Craze Was a Total Accident

The legendary Paul Newman Daytona—one of the most sought-after Rolex watches today—was originally a flop. When Rolex released the Daytona in the 1960s, no one wanted them. Dealers even discounted them just to get them off the shelves.

It wasn’t until the 1980s, when Italian collectors began obsessing over Paul Newman’s personal Daytona with the “exotic dial,” that demand skyrocketed.

The Paul Newman Daytona is one of the best examples of how hype, scarcity, and collector culture can transform a watch from an afterthought into a multi-million-dollar grail. Rolex even pulled the model from the market once they saw how valuable it had become—a masterclass in luxury brand management.

The Deepest Dive Watch Record Isn’t Held by Rolex

Rolex’s legendary Deepsea Challenge went to the bottom of the Mariana Trench in 2012, strapped to James Cameron’s submarine. But here’s the twist—Omega broke that record in 2019, when the Omega Seamaster Planet Ocean Ultra Deep Professional went 20 meters deeper. Omega technically holds the deepest dive record, but if you ask the average watch enthusiast which brand dominates deep-sea exploration, Rolex is still king. Proof that branding > technical specs.

Rolex’s Strict Vertical Integration Means They Control Every Detail

Rolex doesn’t outsource anything—they own their entire supply chain, from forging their own metals (like Everose gold) to manufacturing their own movements. They even created their own steel alloy (904L Oystersteel), which is more corrosion-resistant and harder to machine than standard stainless steel. Unlike many Swiss brands that source movements from ETA or Sellita, Rolex controls every element of production—ensuring unmatched consistency and absolute brand control.

The “Tudor Shield Protects the Rolex Crown”

Rolex’s sister brand, Tudor, isn’t just a “budget Rolex”—it’s actually an innovation lab for Rolex. Tudor uses third-party movements (unlike Rolex’s in-house calibers), allowing Rolex to experiment with new designs, materials, and technologies without risking its core brand image. Rolex can test new ideas through Tudor, and if a design or material succeeds, they slowly integrate it into Rolex models. It’s a genius way to innovate while keeping Rolex’s brand pure.

The Foundation That Owns Rolex

One of the most fascinating parts of Rolex’s structure is that it’s privately owned by the Hans Wilsdorf Foundation. This means there are no shareholders pressuring the company for short-term profits. Instead, Rolex plays a long-term game, reinvesting heavily in vertical integration, marketing, and philanthropic efforts—especially in Geneva, where they quietly give away millions to local causes.

The Future of Rolex

Despite the rise of smartwatches, Rolex has only grown stronger. The Apple Watch wiped out the low-end fashion watch market, but it had the opposite effect on high-end mechanical watches—bringing more people into the world of wristwear and ultimately increasing interest in brands like Rolex.

In the end, Rolex’s success isn’t just about making great watches. It’s about managing perception, creating desire, and sticking to a strategy that has made it one of the most powerful brands in the world.

Want to Dive Deeper?

Honestly, if you have time, I highly recommend listening to the Acquired episode. They do an incredible job breaking down every detail while keeping it engaging.

If you prefer reading, Ben Clymer over at Hodinkee published an in-depth history of Rolex and its manufacturing process back in 2015—another must-read.

Thinking about adding a Rolex to your collection? Whether it’s your first Rolex or you’re tracking down something rare, we can help. Browse our inventory or give us a call—Josh and Cara are always happy to chat!

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