Warning: Spoiler! (Click to show)
My first "real" watch: Muhle Glashutte Germanika V.
Congrats and enjoy it!
I understand and mentioned that the Port Chrono does not follow in the tradition of the original Portuguese watches. Yes, perhaps my interpretation of inferior is "soft." If compared to the a more upscale and true to original Portuguese themed watch, yes it can be considered inferior. However, when compared to watches in its price catagory, I am not sure I would call it inferior. The Port chrono is an entry level watch and as such compromises were made, but that is common place among any entry level item be it a watch, a car, or a television.
If you do not like my chronograph example, then consider JLC Cal 920. Never used by JLC, but used in the original AP RO Jumbo, the original PP Jumbo Nautilus, and VC's 222. Its often considered one of the finest automatic movements. Today, since AP owns the rights (I know they owned 40% of JLC until a few years back) they consider it an inhouse movement when used in their watches,...but its a JLC development. AP's cal 3120 is lovely and more practical with a quickset date, but I prefer the ulta thin 2120 for historic reason, thinness (which was considered an art form until everyone went ga-ga over giant watches), and for its beauty.
I'm not against inhouse made movements, and I do understand the value many people place on them. I just think there are also some great watches that have outsourced movements.
The El-Primero powered Daytonas were grossly underpriced and demand was insanely high (which led to some AD's charging significantly above list price and also people flipping the watches and doubling their money in 24 hours...although Rolex did not get a part of that). It has been said that Rolex only had a limited number of movements from Zenith, and hence they chose to use more of them for the steel and gold and all gold models, which of course have a much higher profit margin. It should also be noted there were numerous significant changes to the movement, which had to be done by hand which also limited how many movements they could produce (The current movement is signifcantly less complicated and easier to produce and service). If Rolex had charged more for their SS Daytonas they would have gotten it. There were waiting lists at most ADs, and as mentioned some AD's were nearly doubling the list price and still selling them. When I got interested in them around 1994 the list price was only $3,800. By the time I got my first in all steel it was $4,350...which was still relatively inexpensive when compared to other chronographs. A Cartier Pasha chronograph was about $6,800, APs Royal Oak Chronograph was $12,500 when released around 1998, the VC Overseas was about $11,000, a Breguet or Blancpain were each about 7,000-8,000 (all of which use the F.Piguet 1185). It wasn't until nearly the year 2000 that it was about $6,000 and it remained there until 2005 when it went up to $6,500...while chronographs from other companies continued to have more significant price increases. For more than a decade it was the watch with the highest demand, highest resale, and it was the closest thing to a complicated watch Rolex made. Dealers often tried to use it as a "Carrot" selling it only to so called "better customers" or telling people they will sell it to them for list price if they also buy something like a Day-Date.
As for reducing profit by using an outsourced chronograph movement, chronograph movements are very complicated and costly to develop. Hence, a company has to determine whether its worth it to spend the R&D to produce one of their own. In the end Rolex wanted to be self sufficient and did develop their own movement cal 4130. I will admit my first inhouse movement Daytona did have a problem with the chronograph function after about a year and had to go back under warranty for repairs...I never had any problems with my El Primero based Daytonas. My second inhouse Daytona never had any problems. However, many companies, including VC, AP, Cartier, IWC and a ton of others still use outsourced movements for chronographs.