The Swatch Group is growing worried about new smartphone technology.

The Switzerland-based watch company has long dismissed new watches from Samsung as novelties that won't last. However, the Galaxy Gear and now Apple's expected watch-like products near announcement are causing a bit of concern.

Nick Hayek, Chief Executive, said smartwatches aren't elegant like high-end Omega or Breguet brands, which Swatch owns, nor do the devices displays have a big enough surface to be practically used.

To compete with these Internet-enabled watches, Swatch is introducing new fitness functions to its Touch line of digital watches. The details of this new fitness programming were not described, but said it will have the "usual features," such as pulse measurement, speed and training calculators. A Swatch spokeswoman said the new features will be launched in products by 2015.

Swatch stands to lose considerable amounts of revenue should it venture fully into smartwatches. Compared with other watch brands that focus on luxury products, Swatch earns roughly 30 percent of its profits from low- and mid-range brands.

Typically, smartwatches are priced between $150 and $300, placing their selling point in the same range at Swatch's most expensive plastic watches but near the cheapest of its quartz timepieces.

Company stock also reflects this uneasiness. In the past 12 months Swatch shares have dropped 11 percent, while similar competitors have only decreased by 5 or 6 percent.

"Nick Hayek is very concerned for sure," Mario Ortelli, an analyst at Bernstein, said. "But he can't say that publicly."

The looming threat of Apple's anticipated smartwatch is kicking this revamp into overdrive. The new product could sell as many as 50 million smartwatches in its first 12 months, according to the Smartwatch Group, a consultancy.

"[Apple] is a technological behemoth with a clear history of destroying categories," Gary Paulin, an analyst at brokerage Aviate Global, said.