I don’t know what IWC charges for a service, but brands will generally win some and lose some in servicing with a flat rate. Is servicing truly a loss? I doubt it, but you can manipulate cost structures to make the numbers say so if you want in a corporate setting.
I don’t think brands and the big conglomerates would be moving more and more to servicing all watches themselves, if they were truly loosing money at it. Richemont, who owns IWC, is incredibly restrictive with parts access, making Swatch and Rolex look generous. Why would Rolex closeall parts accounts for independent watchmakers, if bring all that business into their own already swamped service centres leads to even more loss? Can’t say I believe it.
Some brands do call for more frequent partial services between the regular servicing. In today’s context of extended service intervals, it seems out of touch to expect customers to send you their watches every 2 years. If a brand can’t figure out how to make a watch last more than 2 years between interventions, that seems like a red flag to me. The fact that they talk about the escapement is interesting, as I’m not sure why that would need attention after just 2 years...odd...