All of that paid off. By 1977 Seiko had become the world’s largest watch company in terms of revenues. According to the Harvard Business School study, Seiko’s watch revenues for 1977 totaled $700 million on a production of 18 million pieces. Timex was number two, ahead in unit production (35 million) but far behind in revenue ($475 million). What’s more, Seiko’s decision to develop both analog and digital quartz watches proved to be very wise. (The American electronics firms ignored quartz analogs and the Swiss mostly ignored digitals.) By 1979, approximately half of the quartz watches sold globally were analog and half digital. Of the digitals, more than 80% were LCDs. Business Week touted Seiko’s success in a June 5, 1978, cover story called “Seiko’s Smash: The quartz watch overwhelms the industry.”

“A formidable Japanese watchmaker, K. Hattori & Co., manufacturer of Seiko brand timepieces, has emerged as undisputed kingpin of the $6 billion world watch industry after more than a decade of marketing upheaval and corporate turmoil,” Business Week wrote. “Looking ahead, Seiko management is convinced that it is riding the wave of the future – with much of the watch industry trying to catch up.” They were talking, of course, about Switzerland.