One out of seven prefer to check the time on their cell phones or the computer, rather than the wristwatch.
Consumer analysts Mintel found that 86 per cent of adults still own a wristwatch - even if they no longer rely on it to know the correct time.
The under-25s, who have grown up carrying around mobile phones, are half as likely to own a watch as the older generations, reports the Daily Express.
But those who are, are more likely to choose a designer brand and spend a significant amount of money on it - 25 per cent compared to 13 per cent of older people.
The study found a quarter of Britons were prepared to pay more than 250 pounds for a watch and one in seven more than 1,000 pounds.
Tamara Sender, senior fashion analyst at Mintel, said, "Many consumers have grown up with technology and are just as likely to associate the notion of checking the time with a mobile handset as with a watch.
"Mobile phone ownership is booming and increased usage by all ages could pose a threat to demand for standard watches in the long-term," she said.
"However, with the popularity of alternative time-pieces, watch manufacturers are focusing on other aspects such as design and the latest technology to keep -consumers interested," Sender said.