However this was during a "crisis" in the watch industry, after which it reinvented itself as all-mechanical (in the luxury market.) You can read a story here (I didn't have time to read this one, looks fine): http://www.watchtime.com/featured/when-rolex-went-quartz/
But smart watches aren't a difference in degree rather than kind. They are fundamentally different in a lot of ways that bring benefit to some users.
If Apple started doing a good job with their watch product, the watch industry could not long resist. It is already on the wrists of many celebrities all the time.
The only saving grace for the luxury watch industry is that apple haven't quite gotten it right yet. if people started wearing their apple watch every day, there would be no room on their wrist for a traditional luxury watch as well.