Watchmaker Tag Heuer unveiled its second-generation smart watch, featuring a modular design it said is “brand new in the field of connected watches”.

The company said the connected module is interchangeable with an “Haute Horlogerie mechanical module”, with a “vast choice” of materials, colours and combinations. The modularity also extends to the lugs, strap and buckle.

By swapping the mechanism, the device can be switched from a connected watch to a mechanical watch.

While the company did not discuss forward compatibility, it is certainly possible future smart watch upgrades will be available, avoiding the obsolescence issues of traditional consumer electronics products.

As with the previous device, the new smart watch was created in collaboration with Intel. Connected Modular 45 is water resistant to 50 meters, includes GPS, a NFC sensor for payments, and runs Android Wear 2.0.

Jean-Claude Biver, Tag Heuer CEO, said: “This innovative, unique and distinctive watch is at the forefront of the latest technologies available in Silicon Valley and, at the same time, a genuine Swiss watch, bearing the Swiss Made label.”

Tag Heuer launched its first smart watch in late 2015, and since then Biver was reported to have said its success led to a plan to launch a “collection”.

While the company’s sales figures are not believed to be particularly exciting in a consumer electronics sense, it does indicate a lucrative market for premium smart watches – for the right companies.

At launch, the customisation options mean 56 different versions of the new smart watch are available, of which 11 are standard and 45 available on request.

Pricing starts at $1,650. A “deluxe box set”, including Connected Modular 45, high-end mechanical mechanism and additional strap is available at $17,000.