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I guess there's less reason to worry about affecting sales of the main brand at the moment as they can't make enough to satisfy demand by such a large margin.
I think dating back to the 70's Tudor was an option if you wanted the oyster case but couldn't afford the Rolex movement. Pretty decent option really. Now it still seems a bit confused, from the point of view of a Rolex owner.
This changed slightly with the new Pelago 39 starting to feel closer to a Rolex but still 100% Tudor.