Swatch seems to have acknowledged the difficulty of competing with the Apple Watch, announcing today that it would be focusing its smartwatch efforts on its low-cost plastic models before making a move into its more expensive brands. The WSJ notes that the Swatch Group owns Omega, Longines and Tissot.

Swatch Group AG on Thursday said it would focus its smartwatch technology on its plastic Swatch brand in response to devices launched by Apple Inc. and others before considering installing it in its pricier brands […]

The Swatch Bellamy, a version of its eponymous plastic Swatch watch that uses near-field communication technology, sells for €80 ($88) to €100.

This is hardly a smartwatch at all, comprising a dumb watch with an NFC payment chip embedded beneath the dial. The company plans to make further low-end smartwatch launches in the U.S., Brazil and Switzerland.

“We are not talking about competing with Apple,” said the colorful Mr. Hayek, who was dressed in a plaid shirt and scarf, occasionally donned a pair of Swatch sunglasses and puffed on a big cigar during the news conference. “They are consumer-electronics people and we don’t want to get into that sector.”

Swatch hasn’t exactly set out to make friends with Apple. It’s believed that the company’s trademarking of ‘iSwatch’ prevented Apple using iWatch as the name for the Apple Watch, and the company last year trademarked ‘One More Thing.’

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