Reason expensive Rolex watches

Original Rolex watches use Swiss clockwork, whose quality is beyond reproach, plus the casings were deliberately made luxurious as well as resistant, so as to make the result even more of an expensive luxury item. Add to it that they were great innovators in the watchmaking industry, creating such gadgets as the self winding watch or the waterproof watch, and you can see how they got quite a reputation 

Some rich people with influence over fashion adopted them, which made them highly sought after, and even more expensive... and now they are a century old standard of luxury watchmaking in a world where there are more snobbish people with too much money than ever before, and you've got the stage set for luxury stuff that's priced outrageously and still successful.

Source: Wikipedia

History
Alfred Davis and his brother-in-law Hans Wilsdorf founded Wilsdorf and Davis, the company that would eventually become Rolex SA, in London, England in 1905. Wilsdorf and Davis' main commercial activity at the time involved importing Hermann Aegler's Swiss movements to England and placing them in high-quality watch cases made by Dennison and others. These early wristwatches were sold to jewellers, who then put their own names on the dial. The earliest watches from Wilsdorf and Davis were usually hallmarked "W&D" inside the caseback.In 1908 Wilsdorf registered the trademark "Rolex" and opened an office in La Chaux-de-Fonds, Switzerland. The company name "Rolex" was registered on 15 November 1915. The book The Best of Time: Rolex Wristwatches: An Unauthorized History by Jeffrey P. Hess and James Dowling says that the name was just made up. One story, never confirmed by Wilsdorf, recounts that the name came from the French phrasehorlogerie exquise, meaning "exquisite clockwork" or as a contraction of "horological excellence". Wilsdorf was said to want his watch brand's name to be easily pronounceable in any language. He also thought that the name "Rolex" was onomatopoeic, sounding like a watch being wound. It is easily pronounceable in many languages and, as all its upper-case letters have the same size, can be written symmetrically. It was also short enough to fit on the face of a watch.InnovationsAmong the company's innovations are:

• The first waterproof wristwatch "Oyster", 1926

• The first wristwatch with an automatically changing date on the dial (Rolex Datejust ref.4467, 1945)

• The first wristwatch case waterproof to 100 m (330 ft) (Rolex Oyster Perpetual Submariner ref.6204, 1953)

• The first wristwatch to show two time zones at once (Rolex GMT Master ref.6542, 1954)

• The first wristwatch with an automatically changing day and date on the dial (Rolex Day-Date, 1956)

• The first watchmaker to earn chronometer certification for a wristwatch (1910) ^[7]

Automatic movementsThe first self-winding Rolex wristwatch was offered to the public in 1931 (so-called the "bubbleback" due to the large caseback), preceded to the market by Harwood which patented the design in 1923 and produced the first self-winding watch in 1928, powered by an internal mechanism that used the movement of the wearer's arm. This not only made watch-winding unnecessary, but kept the power from the mainspring more consistent resulting in more reliable time keeping.Quartz movementsRolex participated in the development of the original quartz watch movements. Although Rolex has made very few quartz models for its Oyster line, the company's engineers were instrumental in design and implementation of the technology during the late 1960s and early 1970s. In 1968, Rolex collaborated with a consortium of 16 Swiss watch manufacturers to develop the Beta 21 quartz movement used in their Rolex Quartz Date 5100. alongside other manufactures including the Omega Electroquartz watches. Within about five years of research, design, and development, Rolex created the "clean-slate" 5035/5055 movement that would eventually power the Rolex Oysterquartz.Water-resistant casesRolex was also the first watch company to create a water resistant wristwatch that could withstand pressure to a depth of 100 m (330 ft). Wilsdorf even had a specially made Rolex watch (the watch was called the "DeepSea") attached to the side of Trieste, which went to the bottom of the Mariana Trench. The watch survived and tested as having kept perfect time during its descent and ascent. This was confirmed by a telegram sent to Rolex the following day saying "Am happy to confirm that even at 11,000 metres your watch is as precise as on the surface. Best regards, Jacques Piccard".CollectionsRolex produced specific models suitable for the extremes of deep-sea diving, caving, mountain climbing, polar exploration, and aviation. Early sports models included the Rolex Submariner (1953) and the Rolex Oyster Perpetual Date Sea Dweller. The latter watch has a helium release valve, co-invented with Swiss watchmaker Doxa, to release helium gas build-up during decompression. The Explorer (1953) and Explorer II (1971) were developed specifically for explorers who would navigate rough terrain, such as the world famous Mount Everest expeditions. Another iconic model is the Rolex GMT Master (1954), originally developed at the request of Pan Am Airways to provide its crews with a dual time watch that could be used to display GMT (Greenwich Mean Time), which is the international time standard for aviation and was needed for Astronavigation during longer flights.Certified chronometersRolex is the largest manufacturer of Swiss made certified chronometers. In 2005, more than half the annual production of COSC certified watches were Rolexes. To date, Rolex still holds the record for the most certified chronometer movements in the category of wristwatches.Ceramic bezelsPriceIn fact n the UK, the retail price for the stainless steel 'Pilots' range (such as the GMT Master II) starts from GBP £5,600. Diamond inlay watches are more expensive. The book "Vintage Wristwatches" by Antiques Roadshow's Reyne Haines listed a price estimate of Rolex watches that ranged between $650 and $75,000, while listing Tudors between $250 and $9,000. The most expensive Rolex ever produced by the Rolex factory was the GMT Ice reference 116769TBR with a retail price of $485,350. A Forbes magazine article on the Swiss watch industry compared the retail value of Rolexes to that of competing brands Corum, Universal Genève and IWC.

In 1914 Kew Observatory awarded a Rolex watch a Class A precision certificate, a distinction normally granted exclusively to marine chronometers.

In 1919 Wilsdorf left England due to wartime taxes levied on luxury imports as well as to export duties on the silver and gold used for the watch cases driving costs too high and moved the company to Geneva, Switzerland, where it was established as the Rolex Watch Company. Its name was later changed to Montres Rolex, SA and finally Rolex, SA. Upon the death of his wife in 1944, Wilsdorf established the Hans Wilsdorf Foundation in which he left all of his Rolex shares, making sure that some of the company's income would go to charity. As of 2006 a private trust owned the company, with no shares traded on any stock exchange.

In December 2008, following the abrupt departure of Chief Executive Patrick Heiniger for "personal reasons", the company denied that it had lost 1 billion Swiss francs (approx £574 million, $900 million) invested with Bernard Madoff, the American asset manager who pleaded guilty to an approximately £30 billion worldwide Ponzi scheme fraud. Rolex SA announced Heiniger's death on 5 March 2013.

As of 2010 Rolex watches continue to have a reputation as status symbols.

The company is now starting to introduce ceramic bezels across the range of professional sports watches. They are available on the Submariner, Sea Dweller-Deepsea, GMT Master II and Daytona models. The ceramic bezel is not influenced by UV-light and is very scratch resistant.