Just like all other categories in the world of bling, watch sales have been struggling along since the fall of the economy.

But even before that, there was that gnawing question: would the use of mobile phones put watch factories out of business? Well, the answer back in 2006 was no. Affluent and aspiring affluent consumers still bought watches for bling’s sake.

Now it’s five years later, the U.S. economy has still not fully recovered, and Smartphones are taking over mobile phone sales quicker than anyone predicted. That means more and more people – especially the affluent – are carrying around their whole lives on their iPhones, Droids, and (less and less) Blackberries.

So with bling still dead and screens attracting more attention than faces, there’s only one reason left to buy a watch – investment.

Sure, ‘retro’ wristwatches may be all the rage among the Gen Y set. But how long will that fad last?

Investment watches, particularly Patek Philippe, have long differentiated themselves from the rest of the pack. And the cream always rises to the top. As the bling-only brands fall by the wayside, only one question will remain: If you’re not Patek Philippe, how are you going to differentiate your brand from the king of investment watches?

May the fittest brand survive.