He's right. Smartwatches are going to hit the luxury watch market hard over the long term.
I was a fan of good (but affordable, like Orient) automatic watches always kept my eyes open for deals on interesting ones. At least, until I received an LG G watch (Android smartwatch).
It unlocks my phone just by being near.. Tells me who is calling. Let's me reply quickly to text messages and emails. Accepts voice commands like "Set a reminder for 7 pm to take out the trash" or "How many people live in London". Allows me to change watch faces depending on the situation (e.g. something classier for date night). My default watch face shows me the weather radar, hourly temperature and hourly rain forecast throughout the day. Tracks my activity. And I think it looks decent enough too.
I keep noticing deals on new watches, but they hold no interest. Why spend money on a watch that doesn't do what I'm now used to?
Eventually, luxury watches will be a sign of shallowness and stupidity. Let's say you meet three folks at a conference. One pulls out their iPhone 6, one pulls out their Nexus 6, and one pulls out their Vertu. Who are you going to take seriously? The two folks who have a fashionable and practical phone? Or the idiot who spent $20,000 on a barely functional behind-the-time tool instead of a modern functional one just because it was covered in diamonds.
It may take a decade or two, but eventually a luxury watch will get the same reaction. Maybe not from every last person, but from enough to impact sales.