Shares of Swiss watchmaker Swatch Group AG (SWGAY) tumbled 4% mid-afternoon Wednesday as it became apparent the company could lose out to a well-received Apple Inc. (AAPL) Apple Watch 3 released Tuesday.

The $21 billion traditional watch manufacturer shed a hearty $1 billion in market cap after Apple announced its new series of smart watches that can operate on a network without an accompanying cellphone.

KeyBanc analysts said the Apple Watch 3 was the highlight of Apple's product launch, wooing analysts even more than the highly anticipated iPhone X. The Apple Watch 3 offers "potential for sustained growth" and could drive increasing demand given its growing functionality, specifically regarding health and wellness.

Swatch investors signaled that the company's troubles might just be getting started, too. Bets against a 10% decline in Swatch's stock price over the next month hit their highest mark in a year, relative to the cost of bets on a 10% increase, according to data from Bloomberg.

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