Great News. Nice to have a traditional watch manufacturer get into the smartwatch business. Like the traditional camera manufacturers (like Canon and Nikon) who can make great digital cameras, Swatch can make beautiful and useful smartwatches. Don't know why only electronic companies make smartwatches. More traditional watch companies need to get into the smartwatch business.
The smartwatch is significantly different than the "watch" industry. Companies like Tag Heuer, Rolex, and I guess Swatch have built a reputation for smooth hand movement, precision dies, and quiet gearing. A smartwatch is essentially a tiny computer rather than a watch. I'd expect to see Timex and Casio make a smart watch before Swatch... since they make digital watches.
I agree though that a Swatch smartwatch could be pretty cool. I'll have to wait until I see one running.