Why is The Patek Philippe Nautilus So Expensive?

No watch has dominated the ultra-luxury sports watch category in recent years quite like the Patek Philippe Nautilus. The very definition of a hype watch, the Nautilus is one of Gerald Genta’s most famous designs. The Nautilus was born in the 1970s and while it was always a well-known Patek model — for the sheer fact that it’s so different from most of the brand’s other watches — its status as the must-have piece skyrocketed into the stratosphere over the last decade. The hero of the collection remains now-discontinued Nautilus ref. 5711/1A, which is the full stainless steel variant launched in 2006 that propelled Genta’s original vision into the modern era.

Yes, it is very expensive –especially when you consider Nautilus prices on the secondary market (because buying one at retail for $34,800 was basically impossible). But why is the Patek Philippe Nautilus so expensive; like, three to four times its already hefty price tag, expensive? Even if the market for the Nautilus has cooled down since its peak insanity, it’s still a supremely pricey timepiece. Let’s try to figure out all the details that have fueled the exceedingly high value of the Nautilus by Patek Philippe.

The Prestige of the Patek Name

While the Patek Philippe name has never been as mainstream as Rolex, those in the know understand the prestige this Genevan watch manufacture brings to the table. Patek Philippe belongs to the so-called Holy Trinity of Swiss watchmakers, alongside Audemars Piguet and Vacheron Constantin. What this trio has in common is their mastery of mechanical watchmaking, their ability to create intricate complications, their celebration of fine craftsmanship, and their longevity. They represent the type of traditional high-level watchmaking that very few can ever expect to achieve.

Don’t miss: The Rebirth of the Men’s Dress Watch

Therefore, any watch that bears the Patek Philippe name is already considered a step above most. And of course, the Nautilus benefits from that prestige–and prestige comes at a price. Couple that with the fact that Patek only produces 70,000 watches a year, of which a small fraction are made in steel, and an even smaller fraction are Nautilus models, and it’s easy to see how demand can quickly outpace supply.

The Nautilus Was Always Positioned As Expensive

The high sticker price of the Nautilus is not new; when it was first released in 1976, Patek touted its cost as part of its marketing strategy. Remember, Patek Philippe was, up until then, known for making precious metal dress watches and high-complication timepieces. So, to include a stainless steel sports watch that only indicated the time and date in its catalog was considered iconoclastic at the time.

To drive the point that the stainless steel Nautilus was as worthy as Patek’s classic pieces, the company ran ads with the line, “One of the world’s costliest watches is made of steel.”

So take a watch that’s already marketed as expensive to buy at retail and you can see how it can become even pricier in a thriving secondary luxury watch market.

Learn more about the Nautilus:
History of the Patek Philippe Nautilus
Gerald Genta – The Most Influential Designer of a Generation
How Much Does a Patek Philippe Nautilus cost?

The Popularity of Steel Sports Watches

It’s no secret that stainless steel sports watches are some of the most popular watch styles in today’s market. Whether it’s because of society’s more casual approach to dressing these days, the prevalence of active lifestyles, or the perceived youthfulness and robustness of them, steel sports watches are in demand.

If you’re someone who wants the finest quality and unparalleled exclusivity, then a steel sports watch from Patek Philippe is an appealing option. And the company offers two models in that genre: the Nautilus and the Aquanaut, which was actually inspired by the Nautilus.

More about the Aquanaut: How Much Does an Aquanaut Cost?

As mentioned, steel as a material is relatively rare in Patek’s lineup; the brand by far favors gold and platinum for its watches. It’s been reported that full steel watches only make up 20% to 30% of Patek’s entire production, most of which are destined for the ladies’ Twenty-4 collection. Since rarity plays a role in perceived value, it can drive up prices. Simply put, people want what they can’t get.

The Appeal of Luxury Watches Has Gone Far Beyond Enthusiasts

Buying watches as investments is not a new idea. In fact, if we look at some vintage Patek ads for the Ellipse, we see the company peddling this concept with tag lines such as “The $1,700 Trust Fund,” and advertising copy that states a Patek Philippe is “One of the finest investments you can own,” and the bold declaration that the “Value of a gold Patek Philippe goes up even when the price of gold goes down.”

It’s clear that Patek Philippe (and others) have played the long game in convincing buyers that top-tier watches are solid investments. However, as with most things, this idea has spread like wildfire thanks to the internet. There are countless articles, YouTube videos, and Instagram folks preaching that some luxury watches have yielded better returns than the stock market. So, much like art and other collectibles, select luxury watches, are now treated as investment assets rather than merely objects of desire by enthusiasts, which naturally drives up demand and prices. The grail acquisition at the top of these watch investors’ lists? The Patek Philippe Nautilus, of course.

Plus, the premium prices that grey market dealers charge for Nautilus watches (immediate access to the world’s hottest watch has a price, naturally) further bolster the watch’s reputation as a solid investment.

Patek’s Marketing Machine

If you read interviews with Thierry Stern, President of Patek Philippe & Co, and the fourth generation at the helm of the family business, you can’t help but notice his exasperation with the Nautilus. Some quotes from Thierry Stern about his view of the Nautilus include:

“I am limiting the steel versions, mostly the Nautilus. That’s really the one that everybody is looking for. “

Thierry Stern

“There has been so much noise around this Nautilus. My God. We cannot put a single watch on top of our pyramid.”

Thierry Stern

“If I was really courageous, I should stop Nautilus and say, “We’ve made enough now, shut it down.” Why? Because we are talking about one reference and I don’t want the Nautilus to raise up out of the collection and everyone buy Nautilus. This is why I don’t want to increase the quantity.”

Thierry Stern

However, his frustration about the dominance of the Nautilus aside, Patek Philippe has certainly played a role in hyping up the piece – especially from 2016 (which marked the 40th anniversary of the collection) onward.

Plus, when the discontinuation of the beloved Nautilus 5711 was announced, Thierry Stern conducted a series of interviews to let the public know that the watch would have a final “Victory Lap” before production would cease. It turns out that there were a few important (and highly marketed) Nautilus 5711/1A moments that followed.

First, there was the option of the olive green dial, introduced in Spring 2021. Then later that year, the limited edition Nautilus Tiffany dial with a robbin-blue dial was unveiled with only 170 examples made — and people lost their minds. However, the frenzy became even more insane when a Tiffany Nautilus sold at auction for $6.5 million.

So even if the CEO of the brand displays disinterest in the popularity of the Nautilus, Patek’s marketing tactics have in fact driven its popularity, and thus value, through the roof.

In Popular Culture

Finally, perhaps the biggest reason the Nautilus is so expensive is that it’s become an obvious signal of success in pop culture. Not only do high-profile celebrities wear it but it’s featured in rap lyrics, movies, and shows. Famous personalities from Jay-Z and Mark Wahlberg to John Mayer and Kevin Hart to Victoria Beckham and Ellen DeGeneres are often seen wearing a Nautilus on their wrist.

Instagram flex culture further reinforces the desirability of the Nautilus. The Nautilus owners’ circle is a very exclusive one indeed; you need to have enough pull at authorized retailers or enough money to spend on the secondary market to have one. So chances are, if someone owns a Nautilus (or at least has temporary access to one), then proof of it is going to be shared on Instagram and other social media sites.

We conclude this piece with a quote from Thierry Stern, who answered the question “why is the Patek Philippe Nautilus so expensive” head-on:

“It’s simply because there are just a few of them.” 

Thierry Stern

For more on Patek Philippe and the Nautilus from Grey Market Magazine:
Hands-On Review: Patek 7118, The Ultimate Ladies’ Nautilus
New Patek Philippe Watches for 2023
How To Sell My Patek Philippe Watch
Patek Philippe Introduces a New Nautilus 5990/1A
Patek Philippe Introduces the New Nautilus 5712/1R in Full Rose Gold
Patek Philippe Introduces the Gem-Set Nautilus Joaillerie 7118/1300R
Patek Philippe Introduces the New Nautilus 5811/1G In White Gold